Bloomberg reported, citing people familiar with the matter, that the well-known financial giant BlackRock is approaching cryptocurrency exchanges such as Binance, OKX and Deribit to promote the use of its BUIDL token as a platform for derivatives transactions. Collateral.

BUIDL is a real world assets (RWA) fund backed by BlackRock. As of October 15, the fund had approximately $550 million in assets under management. The fund invests directly in U.S. Treasuries and repos, earning passive income for on-chain token holders. And similar to stablecoins, the BUIDL token is designed to remain pegged to the U.S. dollar.

On the other hand, Bloomberg also reported that “FalconX and Hidden Road, the two largest cryptocurrency prime brokers, have allowed their clients such as hedge funds to use BUIDL as collateral.” In addition, “on Thursday, the custody company Komainu also stated that customers who are eligible to invest in BUIDL will be able to trade using the token as collateral through Hidden Road.”

BUIDL tokens are issued on Ethereum by BlackRock-backed asset tokenization company Securitize on behalf of BlackRock. Last month, Ethena said it would launch a new stablecoin called UStb, which would be backed by BUIDL.

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