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Blackrock, the world’s largest asset manager, is reportedly seeking to disrupt the $3 trillion crypto derivatives market by pushing to have its BUIDL token accepted as collateral. Discussions are ongoing with major exchanges like Binance and Deribit. The token’s interest-paying structure could appeal to institutional investors seeking alternative collateral options in the growing derivatives sector.
Blackrock, the world’s largest asset manager, is reportedly expanding its push into the crypto derivatives market by advocating for its BUIDL token to be accepted as collateral in trades. This initiative reflects the broader interest from Wall Street in digital assets.
In collaboration with brokerage partner Securitize, Blackrock is in talks with major cryptocurrency exchanges, including Binance, Okx, and Deribit, to facilitate the use of BUIDL as collateral in crypto derivatives, according to a Bloomberg report citing anonymous sources. While Binance and Okx did not provide comments, Deribit CEO Luuk Strijers confirmed the company is evaluating BUIDL, though regulatory and technical hurdles must still be addressed.
The BUIDL token, part of Blackrock’s USD Institutional Digital Liquidity Fund, offers interest to holders, setting it apart from alternatives such as Tether’s USDT and Circle’s USDC. With a $5 million minimum investment, it targets institutional investors. Crypto prime brokers Falconx and Hidden Road now allow their clients, including hedge funds, to use BUIDL as collateral.
On Thursday, Komainu, a crypto custodian, announced that clients eligible to invest in BUIDL will now have the option to trade using the token as collateral through Hidden Road. Blackrock charges a management fee of 0.5% on BUIDL, which currently has about $550 million in circulation.
The potential integration of BUIDL as a collateral option on platforms like Deribit and Binance could open up significant new market opportunities for Blackrock. In September alone, derivatives made up more than 70% of total crypto trading volumes, with over $3 trillion in contracts traded, according to research firm CCData. While Tether’s USDT dominates the market as the primary stablecoin for derivatives collateral, BUIDL, which pays interest to holders, could attract attention from traders seeking new alternatives.
