Binance Now Accepts BlackRock’s BUIDL Fund as Collateral—Institutional Crypto Just Leveled Up
Wall Street meets crypto—again. Binance just greenlit BlackRock’s BUIDL fund as collateral for off-exchange trades, signaling another nod to institutional adoption.
Why it matters: When the world’s largest asset manager gets cozy with the world’s biggest crypto exchange, even skeptics pause. This isn’t your grandma’s margin account—it’s TradFi quietly hedging its bets.
The fine print: No terms disclosed (classic crypto), but expect tighter spreads and more leverage for whales. Meanwhile, retail traders still fight over memecoin listings.
Bottom line: The suits aren’t just dipping toes anymore—they’re building plumbing. Cynical take? Watch regulators suddenly ‘discover’ collateral risks now that BlackRock’s involved.
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.
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