Asset manager BlackRock is reportedly exploring the use of its money-market digital token as collateral in cryptocurrency derivatives trading. The company is in discussions to integrate its BlackRock USD Institutional Digital Liquidity Fund (BUIDL) token with major crypto exchanges like Binance, OKX, and Deribit, with Securitize as a partner. This move aims to expand BUIDL's utility as collateral, competing with stablecoins like Tether's USdT. Derivatives, which accounted for over 70% of crypto trading volume in September, involve financial contracts based on asset values. BUIDL is already accepted as collateral by FalconX and Hidden Road for qualified institutional investors. The token's market capitalization reached $547.7 million on Oct. 18, showcasing its significance in asset tokenization. The potential approval of digital assets as collateral for commodities and derivatives trading by the CFTC subcommittee could further bridge traditional and crypto markets, enabling tokens like BUIDL to be used in both sectors. Read more AI-generated news on: https://app.chaingpt.org/news