New York, Wednesday, October 23, 2024-BlackRock is in talks with cryptocurrency exchanges Binance, OKX, and Deribit to adopt its BUIDL token as collateral for derivatives trades, according to a Bloomberg report.
Citing anonymous sources, the report suggests that BlackRock is working to expand the use of its money-market digital coin in the crypto space.
BUIDL, a fund for real-world assets, manages around $550 million as of October 15.
Similar to stablecoins, BUIDL is designed to maintain a peg to the US dollar, making it an attractive option for traders in crypto derivatives.
Two major crypto prime brokers, FalconX and Hidden Road, already allow their clients, including hedge funds, to use BUIDL as collateral.
On October 17, Komainu, a crypto custodian, announced that eligible clients will now be able to trade via Hidden Road using BUIDL as collateral.
BlackRock’s BUIDL tokens are issued on the Ethereum blockchain through Securitize, with BlackRock pushing for broader adoption in the crypto derivatives market. This latest push is seen as part of a larger trend of institutional involvement in the cryptocurrency ecosystem, blending traditional finance with digital assets.
With the backing of financial giant BlackRock, the BUIDL token is positioned to gain traction as an innovative tool for collateral management in the rapidly evolving crypto markets.
