Crypto Platforms Integrate BlackRock’s BUIDL As Collateral

Crypto derivatives exchange Deribit and spot exchange Crypto.com are accepting BlackRock’s tokenized US Treasury fund as trading collateral for institutional and experienced clients.

The move will allow institutional traders to use a low-volatility, yield-bearing digital instrument as collateral for their accounts, lowering the margin requirements for leveraged trading, according to Forbes.

Coinbase, one of the world’s biggest exchanges by trading volume, announced a $2.9 billion deal to acquire Deribit in May 2025.

The deal can expand the utility of BlackRock’s Institutional Digital Liquidity Fund (BUIDL). The fund holds nearly 40% of the tokenized Treasurys market share, or roughly $2.9 billion in value locked, according to data from RWA.XYZ.

Tokenized US Treasury products are slowly emerging as an alternative to traditional stablecoins, thanks to their yield-bearing properties. The growth of these products reflects the broader merger of cryptocurrencies with the legacy financial system.

Related: Franklin Templeton launches ‘intraday yield’ for tokenized assets on Benji

Tokenized yield-bearing government securities proliferate as centralization risks grow

BlackRock tipped plans to integrate BUIDL as a collateral asset across crypto derivatives platforms and centralized crypto exchanges, including OKX and Binance, in October 2024.

In January 2025, the community governing Frax Finance, a decentralized finance (DeFi) protocol, voted to add support for BUIDL as backing collateral for the Frax-USD stablecoin (frxUSD).

Proponents of the integration characterized BUIDL as beneficial, providing deeper liquidity, transfer options and lower counterparty risk from using a collateral asset created and backed by the world’s largest asset manager, BlackRock, with around $11.5 trillion in assets under management.

Despite the positive outlook from the Frax Finance community and other digital asset platforms, centralization concerns and the possibility of structural financial risk persist among industry executives and market participants.

Six firms including BlackRock, Franklin Templeton, Ondo Finance, Superstate, Centrifuge and Circle account for over 88% of the tokenized US treasury market.

Most of the US Treasurys currently onchain were tokenized on the Ethereum network, which continues to be the leading blockchain for real-world tokenized assets. Ethereum holds $5.7 billion of the total $7.3 billion in tokenized government securities.

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