BlackRock’s Tokenized Treasury Fund Gains Collateral Status on Major Crypto Platforms
Tokenized U.S. Treasuries are making deeper inroads into the crypto markets, as BlackRock’s $2.9 billion USD Institutional Digital Liquidity Fund (BUIDL) has been approved as collateral on Crypto.com and Deribit.
Securitize, the firm behind the tokenization of BUIDL, announced Wednesday that traders can now use these tokens as margin for leveraged crypto trades. This means investors can keep earning yields from the Treasuries backing BUIDL while simultaneously deploying capital within crypto markets.
The tokenized Treasuries sector has surged more than 400% over the past year, with a total market capitalization surpassing $7 billion, according to rwa.xyz. These digital assets function similarly to money market funds, allowing investors to earn returns without withdrawing funds from blockchain ecosystems.
Platforms like Crypto.com and Deribit are increasingly accepting tokenized Treasuries as collateral, aiming to enhance capital efficiency for institutional traders.
“Tokenized Treasuries are rapidly becoming an essential tool for managing risk and improving capital efficiency across major crypto venues, while also providing yield,” said Carlos Domingo, CEO of Securitize. “BUIDL is evolving from a simple yield token into an important piece of crypto market infrastructure.”
