Deribit and Crypto.com now accept BUIDL, giving institutional traders access to low-risk, yield-bearing collateral for margin and derivatives trading.
BUIDL offers a 4.5% yield and lower volatility, enabling reduced collateral requirements and more efficient capital allocation for institutional clients.
With $2.9B in assets and support from firms like Ondo and Ethena, BUIDL is emerging as a stablecoin alternative in institutional crypto markets.
BlackRock’s tokenized U.S. Treasury fund, BUIDL, is now approved as trading collateral by Deribit and Crypto.com. This offers institutional traders a low-volatility, yield-bearing alternative to traditional stablecoins or volatile crypto assets for leveraged trading.
https://twitter.com/Cointelegraph/status/1935502964698841327
A Yield-Bearing Alternative to Traditional Crypto Collateral
Institutional traders have long faced a difficult choice when posting collateral—either opt for stablecoins like USDC and Tether that offer stability but no yield, or use volatile assets like Bitcoin or Ethereum, which risk amplifying losses during market downturns.
Now, BlackRock’s BUIDL presents a third option. As a blockchain-based tokenized fund backed by U.S. Treasurys, BUIDL currently pays around 4.5% annually and offers low volatility. Its integration into trading platforms reduces margin requirements for leveraged trades, freeing up capital for other strategies.
“This is a major turning point,” said Michael Sonnenshein, Chief Operating Officer at Securitize, which partnered with BlackRock to launch BUIDL. “Tokenized securities are becoming a challenger to stablecoins as the common denominator across the crypto ecosystem.”
The product has grown to $2.9 billion in assets since its launch in March 2024. Major holders include Ondo Finance, known for tokenizing real-world assets, and Ethena Labs, creator of the USDe stablecoin.
Deribit and Crypto.com Expand Collateral Options
Deribit, the leading crypto options exchange, has started accepting BUIDL as collateral for futures, options, and spot trading. Most of the collateral on Deribit has historically been Bitcoin. Now, BUIDL gives institutions a new tool better aligned with their risk preferences.
Luuk Strijers, CEO of Deribit, explained, “80–85% of our business is institutional. We’re seeing more traditional firms that hold a lot of dollars but want yield.”
Crypto.com will offer BUIDL as collateral for its institutional clients across its full suite of services, including margin, spot, derivatives, and OTC. The exchange serves over 140 million users worldwide. According to President and COO Eric Anziani, BUIDL will initially be available in select jurisdictions.
The integration provides clients with a more efficient capital structure and reduces idle balances, a long-standing issue when using stablecoins.
Tokenized Treasurys Gain Ground Across Crypto Ecosystem
As the demand for productive, low-risk collateral increases, BUIDL’s acceptance could drive broader use of tokenized real-world assets in crypto. With Coinbase in the process of acquiring Deribit for $2.9 billion, BUIDL may soon become collateral across Coinbase’s trading infrastructure as well.
This development positions tokenized U.S. Treasurys to play a more active role in trading markets traditionally dominated by crypto-native assets, offering institutions a new way to participate while preserving yield and managing volatility.
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