BlackRock’s BUIDL Fund Expands to BNB Chain and Gains Binance Collateral Status
BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) has grown to $2.5 billion since launching in March 2024. This makes BUIDL the largest tokenized money market fund operating on public blockchains. The fund offers qualified investors access to U.S. dollar yields backed by Treasury bills and other short-term assets.
Securitize tokenizes BUIDL and provides investors with flexible custody options and daily dividend payouts. The fund operates continuously, allowing peer-to-peer transfers around the clock throughout the year.
BUIDL tokenized treasury becomes accepted collateral on Binance
Binance announced on November 14, 2025, that BUIDL will now serve as off-exchange collateral for institutional trading. This arrangement allows traders to post the token with custody partners rather than directly on the exchange.
Catherine Chen, Head of VIP & Institutional at Binance, noted that institutional clients requested more interest-bearing stable assets for collateral. The integration provides traders with greater flexibility while maintaining compliance frameworks.
Carlos Domingo, CEO of Securitize, explained that BUIDL attracts institutional traders because of its yield generation and status as high-value collateral. Exchanges view the token favorably, which allows holders to access increased borrowing capacity.
BNB Chain integration expands the BUIDL tokenized fund reach
BUIDL launched a new share class on BNB Chain, expanding its presence beyond existing networks. The fund already operates on Ethereum, Arbitrum, Aptos, Avalanche, Optimism, Polygon, and Solana.
The expansion to BNB Chain brings regulated, U.S.-dollar-denominated assets onto the network through collaboration with Securitize and Wormhole. This move increases investor access and enables greater interoperability with other blockchain-based financial applications.
Sarah Song, Head of Business Development at BNB Chain, emphasized that the network supports scalable, low-cost, and secure financial applications. The addition of BUIDL opens new possibilities for investment strategies within the ecosystem.
Tokenized treasury products reshape institutional trading
Domingo highlighted that tokenized assets offer quick and efficient trade settlement compared to traditional systems. Traditional capital markets rely on software from decades ago, creating siloed processes. Blockchains provide an accessible infrastructure that settles trades almost instantly.
BUIDL currently offers a 4% yield to investors backed by Treasury bill holdings. The fund’s acceptance as collateral through custody provider Ceffu enables investors to access liquidity without liquidating holdings.
Several major crypto derivative platforms have integrated BUIDL in recent months. This trend demonstrates growing institutional demand for tokenized Treasury products within digital asset markets.
Institutional adoption of BUIDL tokenized collateral accelerates
The partnership between BlackRock, Securitize, and Binance represents a significant development in institutional crypto adoption. The integration establishes BUIDL as a foundational component of on-chain finance infrastructure.
Institutional traders benefit from capital efficiency while maintaining exposure to tokenized Treasuries. The combination of yield generation, compliance compatibility, and exchange acceptance positions BUIDL as a versatile tool. The fund functions similarly to stablecoins as a collateral option while providing additional interest-bearing benefits.
Real-world asset tokenization continues gaining traction across cryptocurrency markets. Funds, commodities, and private credit products increasingly migrate onto blockchain networks. Investors seek opportunities that bridge traditional financial products with blockchain technology advantages.
Conclusion
The BUIDL fund demonstrates how major financial institutions embrace blockchain technology for traditional asset management. Tokenization provides transparency, efficiency, and accessibility improvements over conventional systems.
As regulatory frameworks mature, more institutional capital will likely flow into tokenized Treasury products. The success of BUIDL may encourage other asset managers to develop similar offerings.
