tl;dr
BlackRock’s USD Institutional Digital Fund (BUIDL), an Ethereum-based tokenized money market fund backed partly by US Treasuries, is now accepted as collateral on Crypto.com and Deribit exchanges. BUIDL offers a stable, yield-generating alternative to stablecoins and volatile crypto assets, currentl...
BlackRock’s $2.9 billion tokenized Treasury fund, BUIDL, has reached a significant milestone by being accepted as yield-bearing collateral on major crypto exchanges Crypto.com and Deribit. This advancement marks a notable step for institutional digital assets, offering crypto investors a stable collateral option with an attractive annual return of around 4.5%, which surpasses most traditional bank yields and mitigates collateral risks.
BUIDL, an Ethereum-based tokenized money market fund partly backed by US Treasuries, is emerging as a programmable, productive capital asset within the crypto ecosystem. It challenges the dominance of stablecoins as the primary instrument for collateral and investment, shifting the landscape toward tokenized securities. Since its launch in March 2024, BUIDL has seen rapid growth, now managing $2.9 billion in assets and capturing a 12% market share in the expanding tokenized real-world asset (RWA) sector.
The tokenized RWA market has surpassed $24 billion on-chain, fueled by over 50% growth this year, with Ethereum maintaining a dominant 60% network market share. Institutional adoption is accelerating as platforms like Deribit—where up to 85% of trading volume is institutional—integrate BUIDL for futures and options trading. This enables traditional financial firms holding significant dollar positions to earn yield without heavy exposure to volatile cryptocurrencies.
Integrating BUIDL as collateral allows exchanges to lower minimum collateral requirements due to its reduced risk profile, while investors can benefit from yield generation on their collateral during trading activities. Industry leaders view this integration as a pivotal development, with tokenized securities poised to transform how capital is deployed and managed in digital finance.
As BUIDL and similar assets gain traction, the evolving tokenized real-world asset sector exemplifies how blockchain technology is bridging traditional finance with decentralized paradigms, offering more stable, efficient, and yield-generating financial instruments to market participants.