Binance Now Accepts BlackRock’s BUIDL Fund as Off-Exchange Collateral
Binance has announced that it now accepts BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) as off-exchange collateral, enabling institutions to trade while earning yield on their custodied assets. This development marks a significant step in bridging traditional finance and the crypto world.
### BUIDL Fund Integration on Binance’s Digital Assets Platform
The BUIDL fund is one of three tokenized products currently available on Binance’s platform. It offers a yield secured by U.S. Treasury bills, allowing institutions to earn returns on their assets even while actively trading. This stands in contrast to traditional stablecoins, which typically offer zero yield.
### Enhanced Capital Efficiency and Risk Mitigation for Traders
By using BUIDL as collateral, institutional traders can achieve greater capital efficiency. They gain liquidity or leverage without having to liquidate their holdings, optimizing their asset management strategies.
Moreover, Binance’s off-exchange settlement service introduces an independent separation of asset custody from trading execution. This service utilizes Binance Banking Triparty and MirrorRSV—a solution developed by Binance’s custody partner, Ceffu. This separation enhances security, transparency, and auditability, which are essential for building institutional confidence.
### Expanding BUIDL’s Reach Across Multiple Blockchains
The launch of BUIDL on the BNB Chain, facilitated by Securitize and Wormhole, extends the fund’s presence beyond its initial availability on Ethereum, Arbitrum, and Polygon. This multi-chain availability increases the fund’s utility and accessibility for a wider range of users.
### A New Standard for Collaboration Between Traditional Finance and Crypto
Binance’s strategic move to integrate BlackRock’s BUIDL fund reflects a growing trend of traditional financial giants entering the crypto space with strong, regulated products. This collaboration not only brings added legitimacy to digital assets but also offers sophisticated tools tailored for institutional investors.
By combining the strengths of both traditional finance and crypto infrastructure, this integration sets a new standard for cooperation and innovation in the financial industry.
https://bitcoinethereumnews.com/tech/binance-adds-blackrocks-buidl-as-off-exchange-collateral/
