BlackRock's Push for BUIDL Token Use in Crypto Derivatives Trading

BlackRock is advocating for cryptocurrency exchanges Binance, OKX, and Deribit to accept its BUIDL token as collateral for derivatives trades, as reported by Bloomberg citing anonymous sources.

The financial giant aims to expand the usage of its money-market digital coin as collateral within the crypto derivatives market.

BUIDL, a sizeable fund for real-world assets, had around $550 million in assets under management as of October 15. It invests directly in U.S. Treasurys and repo agreements, offering yields to on-chain token holders. Similar to stablecoins, BUIDL tokens are designed to maintain a peg to the U.S. dollar.

According to Bloomberg, FalconX and Hidden Road, significant players in the crypto prime brokerage space, currently allow their clients, including hedge funds, to use BUIDL as collateral. Furthermore, custodian Komainu announced that eligible clients wishing to invest in BUIDL will soon trade through Hidden Road using the token as collateral.

BlackRock-backed Securitize issues BUIDL tokens on Ethereum for BlackRock. Recently, Ethena announced plans to launch a new stablecoin called UStb, which will be backed by BUIDL.