Binance, the largest cryptocurrency exchange, announced a key integration for its institutional clients this Friday. The platform will accept BlackRock’s tokenized BUIDL fund as collateral for trading. This integration of BlackRock’s BUIDL fund on Binance deepens the utility of tokenized assets. The move was confirmed in a joint statement.
The fund, representing $2.5 billion in U.S. Treasuries, will be used as off-exchange collateral. This means institutional traders can hold the asset with a custodian, rather than depositing it directly on the exchange. Likewise, Securitize, the fund’s issuer, announced the expansion of BUIDL to BNB Chain. This move increases the interoperability of the largest RWA fund.
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The integration responds to a growing demand from the sector. Catherine Chen, head of VIP & Institutional at Binance, noted this need. “Our institutional clients have asked for more interest-bearing stable assets” to use as collateral, Chen stated. The ability to use BUIDL offers greater flexibility and regulatory compliance.
The launch on BNB Chain will also allow investors to use BUIDL within the ecosystem’s decentralized finance (DeFi) applications. This movement solidifies the trend of Real-World Assets (RWA). Investors use these funds to park idle cash on the blockchain and earn yield.
Robbie Mitchnick, BlackRock’s global head of digital assets, highlighted the move’s importance. He stated this helps “bring foundational elements of traditional finance into the on-chain finance arena.” Therefore, the BlackRock’s BUIDL fund on Binance and its expansion to BNB Chain mark a significant step for RWA adoption.
