In a move that would continue to grow the firm’s presence within the industry, BlackRock and global crypto exchanges are in talks to use its BUIDL token as futures collateral. Indeed, the $11 trillion asset manager is discussing the prospects with leading crypto exchange Binance, among others.
The BUIDL token is BlackRock’s first tokenized offering and has already dominated the market. Moreover, Ethena announced the arrival of a new stablecoin backed by the asset manager’s BUIDL fund. These developments mark the firm’s continued search for greater impact within the derivatives market.
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BlackRock In Talks to Use BUIDL as Futures Collateral
Throughout 2024, BlackRock has embraced cryptocurrency in a monumental way. It first began in January, when the asset manager announced the issuance of a Spot Bitcoin ETF. The product was among the first 11 approved and preceded BTC’s eventual surge to a $73,000 all-time high just three months later.
Now, the firm is looking to grow its crypto presence. Indeed, BlackRock is reportedly now in talks with several global crypto exchanges are in talks to use its BUIDL token as futures collateral. Currently, both FalconX and Hidden Road already utilize the offering as collateral.
Also Read: BlackRock Surpasses $11.5 Trillion in Assets Under Management
Both the asset manager and its brokerage partner, Securitize, have reportedly approached a plethora of exchanges. Platforms like Binance, OKX, and Deribit have been engaged in these discussions with BlackRock, reports confirm. The BUIDL token has been a successful endeavor for BlackRock to this point, and should only gain more prominence and interest.
It took the offering just six weeks to capture nearly 30% of the entire tokenized Treasury market. The $1.3 billion market has seen BlackRock topple firms like Franklin Templeton to take the top spot. The token represents the firm’s USD Institutional Digital Liquidity Fund and is backed by US Treasury bills, repo agreements, and cash.