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Binance will now accept the Blackrock BUIDL token as collateral, signaling a deeper bridge between crypto venues and traditional finance.
Summary
Why did Binance start accepting BUIDL as collateral?
Binance, the world’s largest cryptocurrency exchange, said on Friday it will accept BUIDL as collateral. The token trades at $1 and is backed by a reserve of Treasury bills and other short-term assets. Moreover, BlackRock will issue a new class of BUIDL shares on the exchange’s BNB blockchain.
The tie-up is set to boost the token’s footprint across institutional desks. Since last year’s launch, BUIDL’s market cap has grown to over $2.5 billion. However, the asset is available only to large institutions via the BlackRock USD Institutional Digital Liquidity Fund.
“Integrating BUIDL with our banking triparty partners and our crypto-native custody partner, Ceffu, meets their needs and enables our clients to confidently scale allocation while meeting compliance requirements,” said Catherine Chen, Binance’s Head of VIP & Institutional.
What does the Blackrock BUIDL decision mean for Binance?
Adding collateral options typically deepens derivatives liquidity and borrowing capacity. That said, BUIDL is often treated by exchanges as high-value collateral, allowing holders to borrow more against positions. Meanwhile, other platforms moved earlier, with Coinbase-owned Deribit adopting similar support in recent months.
Institutional appetite for tokenized cash equivalents continues to rise. The BUIDL asset profile, with on-chain transparency and short-duration backing, fits this trend. For more details on the fund’s structure, see the RWA.xyz asset profile. Moreover, live readings of supply and flow are available via BUIDL market data.
How does Blackrock BUIDL differ from stablecoins?
BUIDL operates much like a stablecoin and is frequently posted as crypto derivatives collateral. However, unlike Tether or USDC, it distributes yield from its reserves to holders. The current yield is roughly around 4%, while BlackRock charges a management fee of 0.2% to 0.5%.
Yield and fees at a glance
| Token price | $1 |
| Market cap | over $2.5 billion |
| Minimum investment | at least $5 million |
| Current yield | roughly around 4% |
| Management fee | 0.2% to 0.5% |
To create and administer the token, BlackRock partners with Securitize, a specialist in issuing digital assets. In an interview with Fortune, Carlos Domingo said BUIDL appeals to institutions because it pays yield and is viewed by exchanges as strong collateral for borrowing.
Moreover, tokenized Treasury bills simplify settlement.
“In capital markets, every transaction involves updating a ledger. Right now, the ledgers are built on software from the 1970s, and the process is siloed,” said Domingo. In contrast, he noted, blockchains are easy to access and can settle trades almost instantly. For background on the issuer relationship, see this Securitize press release.
Who can use Blackrock BUIDL, and under what conditions?
Access is limited to large institutional investors, including private equity firms and hedge funds, that invest at least $5 million into the BlackRock USD Institutional Digital Liquidity Fund.
That said, the fund’s structure makes it a yield-paying, stablecoin alternative for balance sheet management.
As Binance tightens ties with traditional finance, demand from VIP clients appears to be driving roadmap choices.
Moreover, integrating custody via Ceffu and banking triparty partners should streamline collateral workflows while maintaining compliance requirements across jurisdictions.
In sum, institutional-grade collateral with transparent reserves is gaining favor across crypto venues. The move expands choices beyond conventional stablecoins and could accelerate tokenized cash adoption across derivatives markets.
As adoption widens, the blackrock buidl framework is poised to channel more institutional liquidity into on-chain markets.