Blackrock to integrate BUIDL fund as collateral for Binance, OKX and Deribit

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The BUIDL token by Blackrock aims to simplify the trading of crypto derivatives by serving as a new form of collateral. The adoption of BUIDL by major exchanges could challenge the dominance of traditional stablecoins such as USDT.

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BlackRock is moving into the crypto derivatives market by integrating money market fund BUIDL to handle crypto transactions, according to a report by Bloomberg.

The asset management giant is in talks with major crypto exchanges, including Binance, OKX and Deribit, with the aim of expanding its use of BUIDL derivatives.

Already accepted by major brokers FalconX and Hidden Road, BUIDL's adoption could challenge major stablecoins in the securities markets, such as USDT and USDC.

BlackRock's BUIDL token is designed for institutional investors with a minimum investment of $5 million. BlackRock aims to provide the most liquid and secure option to traders by being accepted as collateral.

This could shake the dominance of USDT, which has a market cap of $120 billion and is widely used in crypto exchanges.

BlackRock launched its BUIDL token in March 2024 as part of its USD institutional digital liquid fund. The token is a blockchain-based representation of a traditional money-market fund that invests in assets such as US Treasury bills and repurchase agreements.

BUIDL differentiates itself from other stablecoins by offering interest to holders, making it an attractive option for institutional investors looking for yield and safety.

If exchanges like Binance, OKX, and Deribit integrate BUIDL, the token could become an institutional collateral standard, providing a regulated, yielding alternative to existing stablecoins.

In addition to its focus on BUIDL, BlackRock is actively leading the Bitcoin ETF space. Since the beginning of October, BlackRock has acquired more than $2.2 billion worth of bitcoins, accounting for 8 percent of all bitcoin holdings.

BlackRock's management is poised to expand their influence in both the spot and derivatives markets by acquiring the Bitcoin Spot ETF. BUIDL's integration into collateral like derivatives transactions could complement their Bitcoin strategy, allowing for diversified participation in crypto markets.

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