**News Flash: BlackRock Eyes Crypto Derivatives Market with Digital Token**
BlackRock is making waves in the crypto world! The asset management giant is reportedly pushing its BlackRock USD Institutional Digital Liquidity Fund (BUIDL) token to be used as collateral in cryptocurrency derivatives trading. Talks are underway with major crypto exchanges like Binance, OKX, and Deribit, with brokerage firm Securitize also in the mix.
This move aims to expand BUIDL's role, competing with stablecoins like Tether's USDT, which are commonly used as collateral. Notably, crypto derivatives accounted for over 70% of the total trading volume in September, hitting about $3 trillion.
BUIDL is already accepted by top crypto brokers FalconX and Hidden Road and has a market cap of $547.7 million. The token is primarily backed by US Treasurys and other liquid assets, and it's available only to qualified institutional investors.
In a related development, a CFTC subcommittee recently voted to recommend allowing digital assets as collateral for commodities and derivatives trading, potentially opening the door for tokens like BUIDL to be used in traditional markets.
Stay tuned as BlackRock continues to bridge the gap between traditional finance and the crypto world!