QCP Partners with Digital Trading Firm Securitize Credit to Integrate BlackRock’s USD Institutional Digital Liquidity (BUIDL) Fund into its Yield Generation Strategy According to a press release issued on Thursday, the partnership involves Securitize Credit entering into a base trade with QCP using its BUIDL tokenized fund. This is the first on-chain fund backed by BlackRock’s on-chain fund as collateral. This BTC-based base trade (also known as cash arbitrage trading) generated a 20.71% annual gain for the securitization. Cash arbitrage trading has become a popular trading strategy in the crypto industry and is widely adopted by protocols like Ethena and SuperState, as well as by traders looking for opportunities in spot and futures spreads. A typical crypto-based trade involves buying an asset in the spot market while simultaneously trading the same asset in the futures market. This allows investors to take advantage of the narrowing spread between spot and futures (i.e., the “underlying”), as prices typically converge when the futures contract expires. The press release states that Securitize previously used stablecoins as collateral for its six-month BTC-based underlying trading, with an annual interest rate of around 11.26%
