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BlackRock BUIDL tokenized fund is being used as collateral in crypto markets

Photorealistic digital vault with a glowing BUIDL token at center, linked to a global network

BlackRock’s tokenized money market fund, BUIDL, is already being used as collateral in crypto markets, according to reporting that cites the asset manager’s cash management leadership. The development gives one of the largest traditional finance players a visible role in a part of crypto trading that depends on collateral that can move quickly and settle efficiently.

A report from BloomingBit said Dan Malee, BlackRock’s head of cash management for Asia-Pacific, described tokenized funds as already in use as collateral in digital-asset markets. The report added that BlackRock sees room for broader use if banks, financial institutions and settlement systems accept tokenized assets more widely in traditional finance.

The same report said BUIDL has grown to about $2.3 billion in assets under management. It also said BlackRock has expanded related tokenized products in the US and Europe and received approval in September for a Hong Kong dollar-based digital liquidity fund.

Binance has already moved to accept BUIDL

The crypto exchange Binance said in a separate announcement that BlackRock’s BUIDL, tokenized by Securitize, has been integrated as eligible off-exchange collateral for institutional trading on the platform. That makes Binance one of the clearer examples of how a tokenized fund is being folded into live crypto market infrastructure rather than remaining a theoretical use case.

The exchange said the arrangement is aimed at institutional traders using off-exchange collateral, a structure that can let funds support trading activity without needing to be immediately redeemed into cash first. The development points to one practical use case for tokenized funds inside crypto markets, even as broader adoption in traditional finance still depends on legal and operational recognition.

BlackRock’s comments, as reported, suggest the firm wants tokenized products to do more than sit on-chain as digital versions of familiar financial assets. The current example in crypto markets shows the collateral function is already active in at least one venue, while expansion into conventional finance remains dependent on banks, settlement links and regulatory clarity.