(Bloomberg) -- BlackRock Inc. is pushing to have its money-market digital coin more widely used as collateral for crypto derivatives trades, as Wall Street firms push deeper into digital asset markets.
Derivatives accounted for more than 70% of total crypto trading volume in September, according to researcher CCData. Some $3 trillion worth of derivatives contracts were traded over centralized exchanges in September, CCData estimates. That’s down about 50% from March, when Bitcoin reached a record.
BlackRock declined to comment. “The BUIDL ecosystem keeps growing, and we see significant potential in traders using the fund as collateral,” Securitize said in a statement, without commenting on talks with exchanges.
“We are reviewing” a number of tokens, including BUIDL, for use as collateral, Deribit CEO Luuk Strijers said in an interview. He added that the derivatives platform will first need to gain regulatory approval and understand technical aspects of the BUIDL token better. Earlier this month, Deribit introduced a yield-bearing stablecoin from Hashnote as a collateral option on the exchange.