The BUIDL fund launched by BlackRock is now accepted as collateral on major crypto exchanges crypto.com and Deribit, opening new opportunities for institutional traders.
What is BUIDL and Its Features
BUIDL is a digital money market fund launched by BlackRock and Securitize in March 2024. It’s backed by U.S. Treasury bonds and offers about 4.5% annual interest. The fund has quickly grown, now holding $2.9 billion in assets, including significant investors like Ondo Finance and Ethena Labs.
Impact on Traders and Markets
By accepting BUIDL as collateral, Crypto.com and Deribit provide traders a chance to utilize a more secure source of capital. Crypto.com, with over 140 million users, will accept BUIDL as collateral for its institutional customers across its entire suite of trading products. Deribit, the largest crypto options exchange with more than $1.1 trillion in 2024 trading volume, will utilize BUIDL for options, futures, and spot trading.
The Future of BUIDL in the Crypto Economy
Additionally, Coinbase is acquiring Deribit for $2.9 billion, which may bring BUIDL onto Coinbase’s broader platform, advancing tokenized U.S. Treasurys further into the crypto economy.
BUIDL from BlackRock represents an important step in the development of the independent tokenized asset market, providing traders access to new financial instruments and opportunities.
