Major Crypto Exchanges to Accept BlackRock’s BUIDL Fund as Collateral

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The cryptocurrency ecosystem is undergoing a transformative shift as institutional-grade financial products increasingly integrate with decentralized platforms. A pivotal development in this evolution is the acceptance of BlackRock’s USD Institutional Digital Fund (BUIDL) as collateral on two of the industry’s most prominent exchanges: Crypto.com and Deribit. This move signifies a growing convergence between traditional finance (TradFi) and digital asset markets, offering users a new class of stable, yield-generating collateral.

The Rise of Tokenized Real-World Assets

At the heart of this transformation lies the concept of tokenized real-world assets (RWA)—the process of representing physical or traditional financial instruments as blockchain-based tokens. BlackRock’s BUIDL fund is a prime example: an Ethereum-based tokenized money market fund partially backed by U.S. Treasuries. Since its launch in March 2024, BUIDL has rapidly grown to manage $2.9 billion in assets, making it the largest single RWA product in the space.

By tokenizing traditional securities, institutions like BlackRock enable seamless on-chain trading, settlement, and utilization of assets that were previously confined to legacy financial systems. BUIDL’s integration into major crypto exchanges marks a "major turning point," according to Michael Sonnenshein, COO at Securitize, underscoring the fund’s role in bridging institutional capital with decentralized finance (DeFi) infrastructure.

“We’re really starting to see not just the emergence but a real solidification of tokenized securities becoming a challenger to stablecoins as the common denominator across the crypto ecosystem.”

This shift introduces a new form of programmable productive capital—assets that generate yield while remaining actively usable within financial protocols, rather than sitting idle in wallets or bank accounts.

Why BUIDL Changes the Collateral Game

For years, crypto traders and institutions have faced a trade-off when posting collateral:

BUIDL presents a compelling third option: a stable, regulated, yield-bearing asset that combines safety with performance. With an annual yield of approximately 4.5%, BUIDL outperforms most traditional banking products while maintaining resilience through its Treasury-backed structure.

👉 Discover how tokenized funds are reshaping crypto collateral strategies.

The implications for traders and institutions are substantial:

Deribit, a leading derivatives exchange recently acquired by Coinbase, will accept BUIDL for futures and options trading. The platform reports that 80% to 85% of its business is institutional, with growing demand from traditional financial firms seeking exposure to crypto yields without holding volatile digital assets.

Similarly, Crypto.com will roll out BUIDL access to its institutional clients across all trading services, further embedding tokenized assets into mainstream crypto finance.

RWA Market Momentum and Ecosystem Growth

The broader tokenized asset sector is experiencing explosive growth. As of mid-2025, nearly $24 billion in real-world assets have been tokenized on blockchain networks, according to data from RWA.xyz—a surge of over 50% since the start of the year.

Among these, Ethereum dominates with nearly 60% market share, serving as the primary infrastructure for RWA issuance due to its robust smart contract capabilities and developer ecosystem. BlackRock’s BUIDL alone accounts for 12% of the total RWA market, highlighting its outsized influence and adoption.

This momentum reflects increasing confidence from both investors and platforms in the security, compliance, and utility of tokenized instruments. As more institutions explore digital asset integration, products like BUIDL are setting new standards for transparency, yield generation, and interoperability.

👉 Explore the future of asset tokenization and institutional DeFi adoption.

Frequently Asked Questions (FAQ)

What is BlackRock’s BUIDL fund?

BUIDL is BlackRock’s first Ethereum-based tokenized money market fund, partially backed by U.S. Treasury securities. It allows investors to gain exposure to traditional fixed-income returns in a blockchain-native format, with daily liquidity and regulatory oversight.

Can retail investors use BUIDL as collateral?

Currently, BUIDL is primarily available to institutional clients on platforms like Crypto.com and Deribit. While retail access may expand in the future, initial integrations focus on professional trading desks and qualified entities.

How does BUIDL generate a 4.5% annual yield?

The yield comes from the underlying U.S. Treasury securities held by the fund. These short-term government bonds pay interest, which is passed through to token holders after fees. Returns are variable and may change based on prevailing interest rates.

Is BUIDL safer than stablecoins?

While no investment is risk-free, BUIDL benefits from being backed by highly rated government debt and subject to traditional financial regulation. Unlike algorithmic or uncollateralized stablecoins, it has a transparent asset base and regular audits—making it a lower-risk alternative for conservative investors.

Which blockchains support BUIDL?

BUIDL is issued exclusively on the Ethereum blockchain as an ERC-20 token. This ensures compatibility with Ethereum’s vast DeFi ecosystem, including wallets, exchanges, and lending protocols.

Will other tokenized funds follow BUIDL’s path?

Yes. The success of BUIDL has spurred interest from other asset managers, including Fidelity and Franklin Templeton, who are exploring similar tokenized fund offerings. Regulatory clarity and infrastructure maturity are accelerating this trend across global financial markets.

The Road Ahead for Institutional Crypto Finance

As tokenized assets like BUIDL gain traction, they are redefining what it means to hold and use capital in the digital economy. No longer limited to speculative assets or passive stablecoins, users now have access to productive, income-generating collateral that aligns with modern portfolio strategies.

This evolution supports greater institutional participation in crypto markets by reducing friction, enhancing compliance, and improving risk-adjusted returns. With Ethereum continuing to lead as the preferred platform for RWA issuance, and major exchanges embracing these innovations, the foundation is being laid for a more mature, interconnected financial system.

👉 Learn how next-generation financial products are transforming digital asset markets.

The integration of BlackRock’s BUIDL fund into leading crypto exchanges isn’t just a milestone—it’s a signal of deeper structural change. As programmable finance evolves, assets that were once siloed in traditional banking systems are becoming dynamic components of a global, open-access economy.

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