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Cryptopolitan 2025-11-14 21:20:54

BlackRock’s BUIDL fund is now accepted as collateral for off-exchange trades on Binance

BlackRock’s BUIDL fund is stepping straight into the center of crypto trading as Binance moves to accept the tokenized product as collateral for off‑exchange trades, according to a blog post announced by the crypto company on Friday. BlackRock’s fund holds $2.5 billion and carries the full name BlackRock USD Institutional Digital Liquidity Fund, and Binance is making it one of only three tokenized assets allowed for collateral use. The update also came with another change. A press release on Friday said BUIDL will launch a new share class on BNB Chain, the network created by Binance and used widely across its products. The announcement ties BlackRock even tighter to the exchange as both sides continue to build out their crypto presence. Binance expands collateral options with BUIDL For years, traders used Tether or USDC for collateral because there were no real alternatives that worked at scale. Those tokens kept the system moving even though they didn’t offer any yield. But now tokenized money‑market funds like BUIDL give traders access to real‑world returns while still staying inside the crypto markets. That is the main reason platforms have been looking at them. It changes how risk and liquidity move, and big firms are trying to get ahead of that shift. BUIDL was first issued last year as BlackRock’s first tokenized fund built for qualified investors on a public chain. The tokenization was handled by Securitize, and the fund is the biggest of its type based on data from RWA.xyz. With Binance now accepting it, traditional financial products are moving closer to replacing stablecoins in some parts of trading. Robbie Mitchnick, who leads digital assets at BlackRock, said in the release, “This milestone highlights our continued focus on transforming tokenization from concept to practical market utility. We’re helping bring foundational elements of traditional finance into the onchain finance arena.” Talks about making BUIDL eligible as collateral started last year between BlackRock, Securitize, and the biggest exchanges, including Binance. Data from JPMorgan and RWA.xyz shows the tokenized market is still small at about $36 billion, and most of the activity comes from crypto‑native firms instead of Wall Street giants. But demand has been rising as more traders look for alternatives to stablecoins. This latest development also lands during a messy period for Binance. Changpeng Zhao, the co‑founder of the exchange, recently received a pardon from Donald Trump after the company pleaded guilty to US anti‑money‑laundering and sanctions violations. The settlement cost $4.3 billion, and the exchange is still trying to rebuild stability while expanding its products. Sharpen your strategy with mentorship + daily ideas - 30 days free access to our trading program

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