BLACKROCK'S $29B BUIDL FUND NOW ACCEPTED AS COLLATERAL ON CRYPTO(.)COM AND DERIBIT

- Crypto(.)com and Deribit now accept BlackRock’s $29 billion BUIDL tokenized US Treasury fund as collateral, opening new doors for institutional crypto trading.

- This move lets traders use a low-volatility, yield-bearing digital asset to back leveraged positions. It reduces margin requirements while providing a stable alternative to traditional stablecoins.

- BlackRock's BUIDL fund holds nearly 40% of the tokenized Treasury market with about $2.9 billion locked up, as tokenized US Treasurys grow in the crypto space.

- BlackRock plans to expand BUIDL collateral acceptance to other major exchanges and derivatives platforms, including Binance and OKX.

- Meanwhile, decentralized finance protocols like Frax Finance have already adopted BUIDL as collateral for stablecoins.

- Worth noting, Ethereum dominates the tokenized government securities sector, hosting $5.7 billion of the $7.3 billion total issued onchain.

Is Centralization a Concern?

- Tokenized Treasurys are emerging as a credible, yield-generating alternative to stablecoins, blending legacy finance with blockchain innovation. They offer better liquidity, flexible transfers, and lower risk—backed by BlackRock’s $11.5T in assets.

- However, centralization remains a concern. Six major firms—including BlackRock, Franklin Templeton, and Circle—control over 88% of the tokenized Treasury market.