Bloomberg reported, citing informed sources, that renowned financial giant BlackRock is in talks with cryptocurrency exchanges such as Binance, OKX, and Deribit to promote the use of its BUIDL token as collateral for derivative trading.
BUIDL is a real-world assets (RWA) fund supported by BlackRock. As of October 15th, the fund manages assets totaling approximately $550 million. The fund directly invests in US government bonds and repurchase agreements, generating passive income for token holders on the blockchain. Similar to stablecoins, the BUIDL token aims to be pegged to the US dollar.
On the other hand, Bloomberg also noted in the report that “FalconX and Hidden Road, the two largest cryptocurrency prime brokers, have already allowed their hedge fund and other clients to use BUIDL as collateral.” Additionally, “Custody company Komainu also stated on Thursday that eligible clients for investing in BUIDL will be able to trade using the token as collateral through Hidden Road.”
The BUIDL token is issued on Ethereum by Securitize, an asset tokenization company supported by BlackRock. Last month, Ethena announced the upcoming launch of a new stablecoin called UStb, which will be backed by BUIDL.