Introduction to BUIDL and Binance's Integration
Institutional demand for secure, yield-bearing digital assets continues to grow, and Binance’s latest update signals stronger momentum ahead. The exchange announced that it will now accept BlackRock’s BUIDL token as collateral, adding a regulated, interest-paying asset to its institutional offering.
Binance introduced the change as trading volumes among large investors continued to increase. BUIDL, priced at $1, is backed by short-term U.S. Treasury bills and other low-risk assets. Since BlackRock launched the token last year, its market capitalization has risen to over $2.5 billion.
Many institutions view it as a safer alternative to familiar stablecoins because it generates yield from its underlying assets. Current returns are near 4%, while BlackRock charges a management fee of 0.2% to 0.5%. Access is limited to qualified investors who commit a minimum of $5 million to the BlackRock USD Institutional Digital Liquidity Fund.
Expansion to BNB Chain and Securitize's Role
BlackRock introduced BUIDL in March 2024 as its first fund on a public blockchain. Expanding to BNB Chain marks the next phase of its distribution, placing the token on a network with more than $7.4 billion in total value locked. Securitize, the firm responsible for managing and tokenizing the fund, oversees administration and digital transaction services.
Carlos Domingo, CEO of Securitize, said BUIDL appeals to institutional traders because it is viewed as high-value collateral, which can increase borrowing capacity on major platforms.
He added that interest in tokenized assets is rising because they enable near-instant settlement and reduce delays caused by legacy financial systems. Traditional ledgers often rely on outdated software, whereas blockchains provide direct records that update in real-time.
Advantages of BUIDL for Institutions
As part of the arrangement with Binance, BlackRock will issue a new class of BUIDL shares on BNB Chain. Binance stated that the move follows sustained requests from institutions seeking compliant collateral that aligns with both its banking tri-party partners and its custody provider, Ceffu.
Growing adoption of BUIDL rests on several practical advantages that matter to large financial firms:
- •Pays a steady yield backed by U.S. Treasuries.
- •Fits established compliance frameworks for institutions.
- •Serves as strong collateral for derivatives and structured trades.
- •Supports fast settlement through blockchain infrastructure.
- •Operates under a regulated fund structure managed by Securitize.
Strategic Implications for Institutional Investors
Catherine Chen, Binance’s Head of VIP & Institutional, said adding BUIDL strengthens the platform’s connection with traditional finance and helps clients expand positions with greater confidence. The collaboration gives institutions a clearer path to hold Treasury-backed digital assets while meeting internal controls and risk requirements.
Integrating BUIDL with our banking triparty partners and our crypto-native custody partner, Ceffu, meets their needs and enables our clients to confidently scale allocation while meeting compliance requirements.
Catherine Chen
With BUIDL now available on BNB Chain and accepted as collateral on Binance, institutional investors gain wider access to regulated, yield-bearing tokens built on blockchain infrastructure. The development may draw more firms toward tokenized assets as they seek stable, interest-earning instruments in an increasingly active market.