BounceBit Leverages BlackRock’s BUIDL to Democratize Bitcoin Trading—Wall Street’s Playbook Now Open to Mainstream

BounceBit just flipped the script—integrating BlackRock’s institutional-grade BUIDL infrastructure into a retail-friendly Bitcoin strategy. No more VIP ropes.

How it works: The platform’s new system lets users execute complex BTC trades previously reserved for hedge funds (and their 2-and-20 fee structures). All powered by the same pipes that move billions for asset managers.

The catch? Latecomers to crypto might finally get a seat at the table—just as the smart money starts eyeing the exits. Typical.

• BounceBit’s BUIDL-backed bitcoin strategy achieved a total annualized yield exceeding 24%.
• BUIDL token from BlackRock earned additional yield relative to traditional synthetic stablecoin-backed models.
• BounceBit will soon roll out this BUIDL-collateralized strategy to institutional and retail users.

BounceBit, a provider of crypto services for integrating centralized and decentralized finance solutions, has introduced a new Bitcoin derivatives trading strategy. This strategy uses BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL). BUIDL tokens were pledged as collateral enabling the platform to earn higher earnings than traditional stablecoin-backed strategies. This approach resulted in a total annualized yield that exceeded 24%, according to official statements from the crypto firm and supporting data.

The strategy consisted of two key elements. BounceBit conducted a bitcoin basis trade, which involves holding a long position in the spot market and a short position in the futures market. Meanwhile, it shorted BTC put options. These activities used BUIDL tokens instead of stablecoins as collateral. The combination of profit from the BUIDL token, basis trading, and put option writing allowed BounceBit to make enhanced returns for its treasury management activities.

We are excited to announce BounceBit’s dual-yield strategy powered by @BlackRock’s BUIDL, tokenized by @Securitize

The strategy is a RWA proof-of-concept, pioneering the first active use-case for tokenized treasuries, elevating them beyond simple holdings.

Why this matters⏬ pic.twitter.com/qbd5QiGyAB

Jack Lu, founder and CEO of BounceBit, said, “This strategy allows investors to capture both Treasury Bill yields and funding rate arbitrage returns.” He noted that using BUIDL as collateral, rather than stablecoins, provided an extra yield that stablecoin strategies cannot offer.

BUIDL Fund as Collateral Creates Multiple Yield Streams

The BUIDL fund, created by BlackRock, is a tokenized way to invest in Securitize which holds short-term bonds from the U.S. Treasury. The token connects directly to the U.S. dollar and is supported by the ethereum and Polygon blockchains. At the time of writing, BUIDL has a market capitalization of $2.88 billion.

By posting BUIDL as collateral, BounceBit enabled traders to earn not just the usual returns from bitcoin derivatives but also the U.S. dollar yield that BUIDL provides. This combination brought the potential total yield to about 24% per annum.

The structure also mirrors collateral between custodial services and trading venues, enabled by BounceBit’s CeDeFi (Centralized-Decentralized Finance) infrastructure. This technology has secured nearly $500 million in assets on the BounceBit platform.

BounceBit’s MOVE demonstrates a new methodology where tokenized real-world assets, such as BUIDL, serve as active collateral for generating multiple streams of yield, instead of serving only as static holdings.

Expansion Plans and Future of CeDeFi Yield Strategies

BounceBit intends to expand its BUIDL-collateralized bitcoin trading strategy to institutional and retail users shortly. The pilot project, regarded as a proof of concept for the company’s BB Prime product, is meant to establish a base for upcoming CeDeFi applications. The company believes this approach will offer new opportunities for investors seeking USD-denominated yield generation through a blend of real-world assets and digital assets.

With BounceBit’s network, users can earn rewards on their BTC by restaking it and using financial platforms similar to DeFi and CeFi. The firm’s approach to BUIDL indicates it is moving towards more creative ways to apply tokenized real-world assets in the crypto world.

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