BlackRock is reportedly reaching out feelers to some of the world’s largest crypto exchanges for a potentially lucrative business deal. It wants them to allow BUIDL as collateral for derivatives trades, directly competing with Tether.
As of yet, few of the involved parties have gone on the record with specific details.
BlackRock’s Collateral Strategy
BlackRock aims to integrate its BUIDL tokenized fund into crypto derivatives trading as collateral, according to a Bloomberg report. The BUIDL fund, officially called the BlackRock USD Institutional Digital Liquidity fund, has seen significant success this year, boosting real-world asset (RWA) tokens.
BlackRock, alongside its brokerage partner Securitize, is reportedly in talks with major crypto exchanges, including Binance, OKX, and Deribit, regarding BUIDL’s use as collateral. However, these discussions remain largely private. Deribit’s CEO, Luuk Strijers, commented only that the exchange is “reviewing” several tokens, including BUIDL.
Read more: What Are Tokenized Real-World Assets (RWA)?
“The BUIDL ecosystem keeps growing, and we see significant potential in traders using the fund as collateral,” claimed Securitize, in some of the only public comments on these talks.
A key motivator for BlackRock is simple: it wishes to compete with Tether’s dominance in the stablecoin market, just like other firms have attempted. BUIDL is not, strictly speaking, a stablecoin; nevertheless it shares several similarities. Its value is tied to one dollar, it invests in Treasury b
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Author: Landon Manning
