Asset management giant BlackRock is expanding the reach of its flagship tokenization product. The $2.5 billion BUIDL Fund will be available as collateral on the Binance Exchange and will expand to the BNB Chain network.
Tokenized treasury bonds in the hands of traders
BUIDL (BlackRock USD Institutional Digital Liquidity Fund) is a tokenized money market fund collateralized by US Treasury bonds. According to Thursday’s announcement by Securitize from Miami, which is preparing for a public offering, this instrument will be accepted as security for transactions on the largest cryptocurrency exchange in the world.
The fund debuted in March last year and has since expanded its presence to eight blockchains, including the Binance-backed BNB Chain, which has been operating since 2019. According to RWA.XYZ data, BUIDL offers interest rates that have averaged 3.7 percent annualized over the past week.
Response to the needs of the institution
Catherine Chen, head of the VIP and institutions department at Binance, emphasized in a statement that the exchange’s institutional clients have for a long time expressed a need for assets that generate interest while maintaining a stable price. BUIDL responds to these expectations by combining the security of US Treasury securities with the flexibility of blockchain technology.
Carlos Domingo, co-founder and CEO of Securitize, noted that the company continues to bring regulated real-world assets to the blockchain, while unlocking new forms of utility that were previously out of reach.
Ceffu integration and regulatory context
Chen added that BUIDL has been integrated with Ceffu, Binance’s custody service. It is worth recalling that Ceffu came under the microscope of the US Securities and Exchange Commission in 2023 due to suspicions of potential control of assets belonging to the American branch of Binance.
In October, President Trump pardoned Binance co-founder Changpeng Zhao, who previously pleaded guilty to violating US anti-money laundering laws. This decision was criticized by Democrats.
If you need help with registration, check out our guide.
Wall Street opens up to Binance
The expansion of the BUIDL fund is another signal of the growing interest of Wall Street firms in Binance’s services and products. This year, BNB, the fifth largest cryptocurrency by market capitalization according to CoinGecko, was added to the offer of the broker Robinhood and the exchanges Coinbase and Kraken.
On Friday, the BNB token was trading at around $923, down 3.4 percent on the day. The asset hit a record high of $1,370 last month and is up 48 percent for the year, although it has corrected in recent weeks along with Bitcoin and much of the cryptocurrency market.
