BlackRock’s BUIDL (BlackRock USD Institutional Digital Liquidity Fund) was announced as being accepted as off-exchange collateral for trading on Binance.
BUIDL, which is tokenized by Securitize and represents ownership of tokenized U.S. Treasury funds, provides institutional traders with a highly regulated, compliant, and liquid way to hold their collateral.
Now, by allowing institutional users to post BUIDL shares as collateral, Binance is enabling clients to unlock significant capital efficiency. Instead of holding non-yielding cash or non-tokenized assets, institutional traders can maintain exposure to tokenized Treasuries (which offer a regulated yield) while simultaneously utilizing those assets to support their trading positions.
The announcement also included the launch of a new share class for BUIDL on the BNB Chain network, expanding investor access and interoperability. This move solidifies BUIDL’s role as a foundational building block of on-chain finance and provides wider access to global institutional and advanced traders.
Unlocking institutional capital efficiency
The integration underscores the increasing requirement for regulated products in the crypto space. BlackRock’s involvement ensures that the underlying asset is compliant and secure, which is crucial for attracting the vast majority of institutional capital that has remained hesitant about volatile or unregulated crypto assets.
This integration signifies a major victory for the RWA tokenization movement, proving that regulated, traditional finance products can seamlessly intersect with the decentralized exchange world.