BlackRock’s Tokenized Treasury Fund Gains New Crypto Use Case
Tokenized U.S. Treasuries are carving out a bigger role in crypto markets as collateral options expand for sophisticated traders.
On Wednesday, Securitize announced that the BlackRock USD Institutional Digital Liquidity Fund (BUIDL)—currently the world’s largest tokenized U.S. Treasury fund—is now accepted as collateral on Crypto.com and Deribit, two major crypto trading platforms.
This integration allows institutional traders to deploy BUIDL tokens as margin for leveraged positions, all while continuing to earn yield from the underlying Treasuries backing the fund.
The market for tokenized U.S. Treasury products has ballooned in the past year, rising over 400% to exceed $7 billion in market cap, according to data from rwa.xyz. These tokens act much like digital money-market funds, offering investors a way to earn returns on idle cash without pulling assets out of the blockchain ecosystem. More crypto venues are now embracing them as collateral to boost capital efficiency.
BlackRock’s BUIDL fund manages $2.9 billion in assets, investing in a portfolio of cash and short-term U.S. Treasuries to generate yield.
“Tokenized Treasuries are increasingly being utilized to optimize capital efficiency and manage trading risk across leading crypto platforms—while still delivering yield,” said Carlos Domingo, CEO of Securitize. “BUIDL is evolving from a yield-generating token into a core component of crypto market infrastructure.”
About The Author
More Stories
Bitcoin reclaims $81,000 after stronger-than-expected CPI data, as BNB and DOGE outperform major cryptocurrencies
For the first time since March 2023, Bitcoin’s bull-bear cycle gauge has turned green.
GameStop’s $56 billion bid is rejected by eBay, shifting attention back to the company’s bitcoin holdings.