BlackRock is in discussions with exchanges like Binance, OKX, and Deribit to use its BUIDL fund as collateral for derivatives trading, as reported by Bloomberg on October 18.
This initiative aims to increase Wall Street’s engagement in the digital asset market. The BUIDL token, which requires a minimum investment of $5 million, is already accepted as collateral by brokers such as FalconX and Hidden Road.
If major exchanges begin accepting BUIDL, its market exposure could significantly rise, particularly given the crypto derivatives market’s volume of nearly $3.5 trillion in September. Deribit’s CEO has confirmed consideration of BUIDL’s integration, pending regulatory approval and technical assessment.
Meanwhile, decentralized finance (DeFi) platforms are also looking to incorporate BUIDL, with Aave proposing its use in the GHO Stability Module and Ethena Labs launching a stablecoin backed by BUIDL.
This development reflects the increasing convergence of traditional finance and the crypto sector as asset managers delve deeper into digital assets.
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