BlackRock Tokenized Fund to Be Used as Collateral on Binance [Crypto Briefing]

[Financial News] Binance announced on the 18th that it has integrated BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) into its over-the-counter collateral infrastructure. BUIDL is BlackRock’s first tokenized fund launched on a Public Blockchain. This institutional-only money market fund (MMF) invests in real-world assets such as government bonds and repurchase agreements (RP), distributing returns to token holders.
A Binance representative explained, “With this collateral approval, institutional investors can trade on Binance using exchange credit while their BUIDL tokens remain with third-party custodians.” The spokesperson added, “Each institutional investor will benefit from a combination of custodial security and exchange liquidity, enabling more efficient capital management.”
Binance’s Banking Triparty solution is designed to reflect the collateral management structure of traditional finance. It allows collateral assets such as fiat currency or government bonds to be fully held by a third-party bank.
Robbie Mitchnick, Global Head of Digital Assets at BlackRock, stated, “Now that BUIDL can be used as collateral within digital market infrastructure, a core element of traditional finance is naturally migrating into the on-chain financial market.”
Catherine Chen, Head of Binance’s VIP and Institutional Business, remarked, “Institutional clients have long needed stable assets that can generate interest income based on collateral. With BUIDL now added to our collateral system, institutions can expand their operations while meeting compliance requirements.”

[email protected] Kim Mi-hee Reporter