BlackRock’s $2.9B BUIDL Fund Launches on BNB Chain

Key Developments in RWA Tokenization

BlackRock, a leading asset management firm, has announced the expansion of its tokenized U.S. Dollar Institutional Digital Liquidity Fund (BUIDL) to the BNB Chain. This fund, which holds U.S. Treasury assets and currently manages over $2.9 billion, has gained significant new utility. Binance has begun accepting BUIDL as off-exchange collateral for its institutional trading services, providing a novel avenue for institutional capital to enter the digital asset space while continuing to earn yield from real-world assets (RWA).

The BUIDL fund offers qualified investors exposure to U.S. Treasuries and aims to deliver a competitive yield of 3.7%. The integration onto the BNB Chain was facilitated by BUIDL's tokenization partner, Securitize, and the cross-chain interoperability protocol, Wormhole. This collaboration enables the seamless movement and utilization of the asset across various blockchain networks.

Binance Integrates BUIDL as Off-Exchange Collateral

Binance has incorporated BUIDL as an eligible collateral option for its institutional off-exchange settlement services, which include Binance Banking Triparty and MirrorRSV. This arrangement allows institutional traders to hold BUIDL tokens with a third-party custodian, thereby mitigating counterparty risk. These tokens can then be used as collateral to access deep liquidity and execute trades on Binance. Importantly, this structure enables traders to earn the yield generated by the tokenized Treasuries without needing to liquidate their holdings.

The expansion to BNB Chain is part of BlackRock and Securitize's ongoing multi-chain strategy. Previously, BUIDL was deployed on networks such as Solana and Polygon. This initiative, alongside developments on Arbitrum and Avalanche, underscores a deliberate effort to establish BUIDL as a foundational, interoperable component within the Web3 financial ecosystem.

Carlos Domingo, Co-founder and CEO of Securitize, commented on the development, stating, "BUIDL's expansion to BNB Chain and its use as collateral on Binance further extends its reach and utility." He further added, "We’re continuing to bring regulated real-world assets onchain while unlocking new forms of utility that were previously out of reach."

By adding BNB Chain, a network recognized for its scalability, low transaction costs, and active user base, BUIDL is extending its accessibility to a new segment of institutional investors and decentralized finance (DeFi) applications. The involvement of Securitize and Wormhole in enabling multi-chain functionality suggests a strategic plan to deploy BUIDL across all major, institutionally-friendly blockchains. This aims to ensure its position as the primary, liquid, on-chain representation of secure U.S. dollar yield.

Advancing Real-World Asset Tokenization

This launch is a significant development within the expanding trend of Real-World Asset (RWA) tokenization. It serves as institutional validation, signaling that tokenized securities are evolving from experimental concepts to a core layer of the digital financial system. For institutional traders, this translates to more efficient capital deployment; they can effectively trade at a net-cost basis, as the yield generated by their collateral can offset trading fees and associated expenses.

The collaboration between BlackRock, Securitize, Wormhole, and Binance is instrumental in creating an integrated financial infrastructure that bridges traditional and digital finance more effectively than ever before.

BlackRock's successful launch of the $2.9 billion BUIDL fund on BNB Chain and its subsequent acceptance as collateral on Binance represent a notable step in the evolution of financial markets. It offers institutional investors a high-utility, regulated, and yield-bearing asset that harmoniously combines the stability of U.S. Treasuries with the efficiency of blockchain technology. This strategic move is redefining capital management within institutional crypto trading and reinforcing the role of tokenized real-world assets as a driving force in the future of finance.

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