Binance Integrates BlackRock’s BUIDL for Institutional Off-Exchange Collateral
Institutional traders can now leverage BlackRock’s tokenized fund as collateral on Binance, marking a significant step in the convergence of traditional and digital finance.
Furedata - Binance is now accepting BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) as off-exchange collateral. This arrangement allows institutional clients to trade on the exchange while their assets remain securely held with custodians.
The integration enables traders to generate yield from their BUIDL holdings while concurrently using those same assets to support and secure their trading positions on the Binance platform.
Furthermore, a new BUIDL asset class is set to launch on the BNB Chain. This expansion will extend the token’s ecosystem beyond Ethereum, opening it to a broader range of decentralized applications.
This development is part of a larger movement toward tokenized treasuries serving as mainstream trading collateral. Information from Cointelegraph highlights that Binance joins a growing list of exchanges enabling clients to use these assets for backing positions.
Other major platforms have already embraced this trend. For instance, Deribit and Crypto.com started accepting BUIDL in July, providing clients with a stable, yield-generating alternative to cash or stablecoins.
Bybit followed suit in September by supporting QCDT, a Dubai-approved, U.S. Treasury-backed tokenized money-market fund, further solidifying the use of such assets as viable trading collateral.
This industry shift reflects practices in traditional finance, where treasuries are pledged through bank-operated systems. Tokenized U.S. Treasurys currently constitute an $8.57 billion market, the second-largest real-world asset class.
BlackRock’s BUIDL leads this sector with approximately $2.52 billion in total value. It is followed by Circle's USYC at $1.06 billion and Franklin Templeton's BENJI, which holds around $850 million.