BlackRock’s BUIDL Fund, a tokenized money market fund backed by U.S. Treasurys offering approximately 4.5% annual yield, has been approved as collateral on major cryptocurrency exchanges Crypto.com and Deribit. This development enables institutional traders to use the yield-generating, low-volatility BUIDL Fund as collateral for spot, margin, derivatives, and over-the-counter trading, increasing capital efficiency and reducing collateral risk compared to traditional volatile crypto assets like Bitcoin or Ethereum.
Crypto.com, which serves over 140 million users, and Deribit, the world's largest crypto options exchange, have integrated BUIDL Fund into their trading infrastructure, allowing institutional clients in select jurisdictions to leverage a stable and productive asset. Deribit will also list BUIDL tokens on its spot market.
The BUIDL Fund currently manages $2.9 billion in assets and has key holders including Ondo Finance and Ethena Labs. The integration further reinforces the move towards tokenized real-world assets and programmable financial instruments, promising enhanced margin efficiency and liquidity preservation for traders.
Additionally, the expected acquisition of Deribit by Coinbase could extend BUIDL Fund's use case into Coinbase's broader ecosystem, accelerating adoption of tokenized securities across leading U.S. crypto networks. Industry analysis projects the tokenization market could reach between $4 trillion and $16 trillion in the coming decade, highlighting significant institutional interest and infrastructure expansion.