Binance has announced the acceptance of BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) as off-exchange collateral. This integration allows institutions to engage in trading activities on the exchange while maintaining custody of their assets.
The partnership merges BlackRock’s onchain money market fund with Binance’s custody infrastructure. This enables traders to generate yield on BUIDL while simultaneously utilizing it to support their trading positions on the Binance platform.
Furthermore, a new BUIDL asset class is set to launch on BNB Chain. This expansion aims to broaden the token’s accessibility beyond the Ethereum network and integrate it with a wider array of onchain applications, as detailed in a Binance blog post.
With the inclusion of BUIDL, Binance now supports a variety of yield-bearing tokenized assets, including Circle’s USYC and OpenEden’s cUSDO.
BUIDL represents BlackRock’s inaugural onchain liquidity fund. It is a tokenized, interest-bearing USD vehicle, issued through Securitize. BlackRock, recognized as the world's largest asset manager, managed approximately $13.4 trillion in assets as of the third quarter of 2025.
The Growing Adoption of Tokenized Treasuries
Tokenized money-market funds are evolving from simple yield-generating products into mainstream trading collateral. Binance joins an increasing number of exchanges that permit qualified clients to post Treasury-backed tokens as collateral for their positions.
In July, Deribit and Crypto.com began accepting BUIDL as collateral. This development provides institutional traders with a low-volatility, yield-bearing asset that can be used as an alternative to cash or stablecoins.
Following this trend, Bybit introduced support for QCDT in September. QCDT is a tokenized money-market fund backed by US Treasurys, which has received approval from the Dubai Financial Services Authority (DFSA).
This movement mirrors practices in traditional finance, where companies frequently pledge Treasurys and money-market funds as collateral through centralized triparty systems, rather than holding these assets directly on trading venues.
According to data from RWA.xyz, tokenized US Treasurys have emerged as the second-largest category of real-world assets (RWAs), following stablecoins, with a current market capitalization of $8.57 billion.
The leading funds in this category include BlackRock’s BUIDL, with a total value of approximately $2.52 billion, Circle’s USYC, with $1.06 billion, and Franklin Templeton’s BENJI, with $850 million.