BlackRock seeks to increase the use of its digital token BUIDL as collateral for crypto derivatives trading, engaging in talks with major exchanges.

Discussions with Crypto Exchanges

BlackRock is in discussions with major crypto exchanges like Binance, OKX, and Deribit about implementing BUIDL tokens in trades, aiming to expand the use of these tokens in the market.

Features of BUIDL and Investment Conditions

BUIDL is designed for institutional investors with a minimum investment of $5 million, investing primarily in safe assets such as U.S. Treasury bills and cash. As of October 18, BUIDL had a market circulation of about $557 million and charges a management fee of 0.5%.

Market Impact and Competition with USDT

BUIDL is already accepted as collateral by crypto brokers FalconX and Hidden Road, positioning it as a strong contender in the market. If tokens get accepted on platforms like Binance and Deribit, it will significantly expand their presence. Deribit's CEO, Luuk Strijers, noted that they need regulatory approval first and a better understanding of how BUIDL works before using it as collateral.

BUIDL may become a significant competitor to USDT in the market by offering interest to holders and having the potential to expand its presence on major trading platforms.