FalconX

BlackRock

BlackRock is making moves to expand the use of its digital money-market coin, BUIDL, as collateral for cryptocurrency derivatives trades.&nbsp;&nbsp;
According to sources familiar with the matter shared by <a href="https://www.bloomberg.com/news/articles/2024-10-18/blackrock-wants-crypto-exchanges-to-use-buidl-token-as-collateral" target="_blank" rel="noopener noreferrer nofollow">Bloomberg</a>, BlackRock and its brokerage partner, Securitize, are engaged in early discussions with some of the largest global crypto exchanges.
These talks are a part of making BUIDL accepted as collateral on platforms such as Binance, OKX, and Deribit.
<h3 class="whitespace-pre-wrap break-words" id="falconx-and-hidden-road-allow-usage-of-buidl">FalconX and Hidden Road allow usage of BUIDL</h3>
The BUIDL token is designed for qualified institutional investors with a minimum investment of $5 million. In a short period, FalconX and Hidden Road, two prominent crypto prime brokers, currently allow their clients to use BUIDL as collateral.
BlackRock’s BUIDL has a management fee of 0.5% and has reached a total circulation of nearly $550 million, according to tracker <a href="https://app.rwa.xyz/assets/BUIDL" target="_blank" rel="noopener noreferrer nofollow">rwa.xyz</a>.
The cryptocurrency derivatives market is a growing opportunity. In September alone, derivatives accounted for over 70% of total crypto trading volume. Also, an estimated $3 trillion worth of contracts traded on centralized exchanges, as reported by researcher CCData.
<h3 class="whitespace-pre-wrap break-words" id="deribit-ceo-confirmed-plans-to-include-blackrock-s-buidl">Deribit CEO confirmed plans to include BlackRock’s BUIDL</h3>
Deribit CEO Luuk Strijers confirmed that they are reviewing several tokens, including BUIDL, for use as collateral. However, he noted that regulatory approval and a deeper understanding of the token’s technical aspects would be necessary before implementation.
BlackRock’s vision could pose a challenge to established players like Tether and Circle if it turns out to be a success.
The BlackRock USD Institutional Digital Liquidity Fund, represented by the BUIDL token, is a tokenized money-market fund. It was launched in March, and like most stablecoins, BUIDL aims to maintain a value of $1.
It invests in instruments such as US Treasury bills, cash, and repurchase agreements. A key differentiator is that BUIDL pays interest to holders. This could potentially enhance its appeal to derivatives traders.

BlackRock aims to expand BUIDL and is in discussion with Binance, OKX

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