- Binance now accepts BlackRock’s $2.5B BUIDL fund as institutional off-exchange collateral.
- BUIDL expands to BNB Chain, boosting access across DeFi and institutional trading systems.
- Tokenized treasuries like BUIDL accelerate RWA adoption with yield and rapid settlement.
BlackRock’s tokenized Treasury fund, BUIDL, has taken another major step in its rapid institutional adoption cycle after Binance confirmed it will now accept the $2.5 billion token as off-exchange collateral for professional traders. The move expands the presence of the world’s largest tokenized money-market product while strengthening the growing connection between global asset managers and the crypto trading ecosystem.
BlackRock-Binance BUIDL: A New Institutional Collateral Standard
Binance, the world’s largest crypto exchange by trading volume, announced on Friday that institutional clients can now use BUIDL to post collateral through custody partners rather than depositing directly onto the exchange. The off-exchange model aligns with bank-style triparty frameworks that large funds already use, offering lenders and traders additional protection and compliance assurance.
Binance Lists BlackRock’s $2.5B BUIDL Token as Collateral (Source: X)
The decision responds directly to demand, according to Catherine Chen, Binance’s Head of VIP & Institutional. She said clients have been “asking for more interest-bearing stable assets” they can hold while actively trading.
Because BUIDL pays out yield from a portfolio of short-term U.S. Treasury bills and similar cash-equivalent instruments, currently around 4%, it serves the same role as a stablecoin but with income generation.
However, BlackRock charges a management fee between 0.2% and 0.5%, but the net yield remains attractive to high-volume traders searching for efficient capital deployment.
What Makes BUIDL Different
BUIDL is issued through the BlackRock USD Institutional Digital Liquidity Fund and structured by Securitize, a specialist in tokenized financial products. Unlike consumer-focused stablecoins such as USDC or Tether, BUIDL is strictly for institutional customers who commit a minimum of $5 million.
This pool now exceeds $2.5 billion in assets, making it the largest tokenized Treasury product on public blockchains, according to data from RWA.xyz. Because the token represents share ownership in a regulated fund holding ultra-safe securities, exchanges view it as “high-value collateral,” Securitize CEO Carlos Domingo told Fortune.
He added that tokenized assets like BUIDL are attractive not only for yield but also for rapid settlement. While legacy capital markets software dates back to the 1970s and operates in isolated systems, blockchain rails process transfers and collateral updates nearly instantly.
That efficiency has helped tokenized real-world assets (RWAs) become one of crypto’s fastest-growing segments, with money market funds, corporate credit, and treasuries increasingly used for DeFi liquidity and centralized derivatives trading.
BNB Chain Adds a New Share Class
Alongside the Binance collateral announcement, BlackRock has issued a new class of BUIDL shares on BNB Chain. The expansion brings the fund to another major ecosystem after being launched previously on Ethereum, Aptos, Solana, Avalanche, Arbitrum, Polygon, and Optimism.
Integrating BUIDL into BNB Chain significantly broadens its functionality. Investors can now deploy it across decentralized finance applications within the BNB ecosystem, where demand for tokenized yield products has risen throughout 2025 due to growth in derivative platforms like Aster and integrations with Binance Wallet and Binance Alpha.
Robbie Mitchnick, BlackRock’s Global Head of Digital Assets, said expanding BUIDL across “leading digital market infrastructure” helps bring traditional finance foundations fully on-chain.
Tokenized Assets Push Further Into Mainstream Finance
The Binance-BlackRock announcement highlights a broader trend: tokenized RWAs are rapidly moving from experimentation to mainstream financial plumbing. With exchanges like Coinbase-owned Deribit already accepting BUIDL as collateral, institutional traders are shifting from static stablecoins to instruments that retain stability while generating returns.
For Binance, the addition of BUIDL follows strategic steps to deepen connectivity with traditional finance. By integrating the fund with its triparty banking partners and crypto-native custody provider Ceffu, the exchange is creating institutional-grade pathways for capital to flow between regulated and crypto markets.
The rapid growth of BUIDL, launched only in 2024 and already managing over $2.5 billion, signals how quickly tokenized Treasury products are becoming foundational collateral in digital-asset markets. As more exchanges, blockchains, and asset managers adopt similar models, on-chain finance is increasingly mirroring, and in some ways improving, the mechanisms used in global capital markets.
