Crypto.com and Deribit will soon accept BlackRock’s BUIDL fund, a tokenized money market fund backed by U.S. Treasurys, as collateral on their exchanges.
Key Takeaways:
BlackRock’s BUIDL fund will soon be accepted as collateral on Crypto.com and Deribit. The fund offers a 4.5% annual yield, giving traders a less volatile, income-generating alternative. The integration may expand further as Coinbase moves to acquire Deribit.Until now, crypto traders have had to choose between parking stablecoins that earn nothing or pledging volatile assets like BTC or ETH that could plummet in value.
With BUIDL, they would be able to post yield-generating collateral with less price risk.
BUIDL’s 4.5% Yield Offers Traders Capital Efficiency Without Volatility
Currently yielding around 4.5% annually, BUIDL gives traders a way to earn while they wait and opens the door to lower margin requirements.
“This is a major turning point,” Michael Sonnenshein, COO of Securitize, which partnered with BlackRock to issue BUIDL onchain, told Forbes.
“Tokenized securities are evolving from passive capital to programmable, productive assets.”
BUIDL launched in March 2024 and has already attracted $2.9 billion in assets.
Its largest holders include Ondo Finance and Ethena Labs, two key players in the real-world asset (RWA) and stablecoin space. Now, its footprint is expanding into crypto’s trading core.
Crypto.com, which serves over 140 million users, plans to offer BUIDL as collateral across spot, margin, derivatives, and OTC services for institutional clients in select jurisdictions.
Deribit, the world’s largest crypto options exchange, will support BUIDL for futures and options trading, as well as on its spot exchange. Until now, most of Deribit’s collateral has been in Bitcoin.
“For us, it’s about choice and efficiency,” said Deribit CEO Luuk Strijers. “The majority of our users are institutional, and many hold cash, not crypto. They don’t want to lose yield just to get access to leverage.”
The move may have wider implications. Coinbase is currently acquiring Deribit in a $2.9 billion deal.
If completed, it could bring BUIDL’s use case into Coinbase’s broader infrastructure, accelerating the presence of tokenized Treasurys across U.S. markets and crypto trading platforms alike.
Tokenization Market Could Reach $16T by 2030
A report by the Global Financial Markets Association (GFMA) and Boston Consulting Group estimates the global value of tokenized illiquid assets will reach $16 trillion by 2030.
Even more conservative estimates from Citigroup suggest that $4 trillion to $5 trillion worth of tokenized digital securities could be minted by 2030.
Recognizing this potential, major companies are making significant moves in the tokenization space.
Goldman Sachs, for instance, plans to launch three new tokenization products later this year, driven by growing client interest.
Some protocols have played a significant role in driving this growth, particularly in terms of active users.
Digital carbon market platforms like Toucan and KlimaDAO, as well as the real estate tokenization protocol Propy, have experienced substantial user growth.
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