BlackRock, the world's largest asset manager, is taking steps to expand the use of its digital currency, known as the BUIDL token, as collateral in crypto derivatives.

BlackRock's Strategic Move

BlackRock is aiming to make its BUIDL token more widely accepted as collateral in the crypto derivatives space. This move comes as Wall Street firms increasingly expand their presence in digital assets.

Partnership with Major Exchanges

BlackRock, in collaboration with brokerage partner Securitize, is reportedly in early talks with major crypto exchanges like Binance, OKX, and Deribit to promote the use of the BUIDL token as collateral. Sources familiar with the matter disclosed this information on condition of anonymity.

Eligibility and Current Acceptance

Currently, leading crypto industry firms such as FalconX and Hidden Road accept BUIDL as collateral. BlackRock’s token is designed specifically for qualified institutional investors with a minimum investment threshold of $5 million. Moreover, BlackRock offers its clients a BTC Spot ETF and has received over $1 billion in BTC for client accounts in the past three days.

BlackRock is actively expanding its position in the cryptocurrency sector, aiming to implement its BUIDL token as collateral on major crypto derivatives markets.