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Binance Approves BlackRock’s BUIDL as Collateral as Fund Expands to BNB Chain

Highlights:

  • Binance approved BlackRock’s BUIDL as new collateral for institutional traders.
  • BUIDL is expected to introduce a new share class on BNB Chain to give more investors direct on-chain access.
  • BlackRock is pushing tokenized Treasuries deeper into active crypto markets.

The global investment manager BlackRock has further solidified its digital assets footprint as Binance gave a go-ahead for its BUIDL to be used in the off-exchange collateral program. This marks a significant turning point because institutional trades now have different methods to obtain yield-bearing U.S. Treasury exposure while trading in large volumes. 

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BlackRock’s Tokenized Fund Gains Broader Utility

In 2024, BlackRock launched the USD Institutional Digital Liquidity Fund (BUIDL). The fund, which is managed by Securitize, comprises cash, short-term Treasuries, and repo securities while maintaining a stable $1 token value.

Investors get daily accrued dividends in tokens, which are paid out monthly. Securitize is responsible for issuing tokens, managing the investors, and the transfer of assets. In addition, the firm facilitates the daily transfer of shares among the approved wallets all year long.

The recent growth was fueled by institutional demand, as many traders sought interest-bearing assets that could be pledged as collateral without necessarily having them on an exchange.

The need was met by Binance with its triparty banking structure and its custodial partner, Ceffu. Additionally, the structure allows clients to maintain BUIDL at a regulated bank or Ceffu and obtain a trading credit at the exchange. Consequently, Binance is approving BlackRock’s BUIDL as a flexible capital-deployment tool.

BNB Chain Adds a New Share Class for Onchain Finance

BUIDL is supported by several major blockchains, such as Ethereum, Arbitrum, Polygon, Optimism, Avalanche, Solana, and Aptos. The introduction of BNB Chain brings the number to nine networks. It also shows that BlackRock is transitioning to a multichain ecosystem. Securitize noted that approximately two-thirds of existing assets are already out of Ethereum as an indicator of increasing interest in alternative, less expensive chains.

The introduction of BUIDL into the BNB Chain reinforces the network asset strategy of the real world. BNB Chain is expected to assist financial applications that can be scaled and operate on low fees and rapid settlement.

Sarah Song, Head of Business Development at BNB Chain, emphasized how BUIDL transforms tokenized treasuries into programmable instruments that can be plugged into on-chain strategies by traders. The growth also underpins the overall RWA activity of the network, such as an increase in integrations by issuers such as Ondo Finance and new ecosystem funding by YZi Labs.

Furthermore, institutional investors now gain a unified experience. They are allowed to subscribe to the fund via Securitize Markets, hold tokens on its preferred custody, post them as off-exchange collateral, and utilize the same asset in the BNB Chain DeFi universe. This establishes a direct connection between the traditional markets and on-chain applications.

A Milestone for Onchain Treasuries and Institutional Adoption

BUIDL is the largest tokenized U.S. Treasury fund currently on publicly accessible blockchains, having more than $2.5 billion in assets and about 93 holders. Its recent expansion contributed to pushing the entire tokenized Treasuries market up to almost $9 billion, as per RWA data. Additionally, market experts have pointed out that these moves highlight the transition from concept-level tokenization to active market utility.

BNB token has gained momentum as Binance approves BlackRock’s BUIDL, despite the general negative sentiment in the market. Currently, the price of BNB stands at approximately $933, having increased by 2.20% in the last 24 hours. In addition, the market capitalization and trading volume of BNB have soared to $128 billion and $3.25 billion, respectively.

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