Binance adds BlackRocks BUIDL as off-exchange collateral for institutional traders

Binance has begun accepting BlackRocks USD Institutional Digital Liquidity Fund (BUIDL) as off-exchange collateral, giving institutions a way to trade on the exchange while keeping their assets with custodians.

The integration combines BlackRock‘s onchain money market fund with Binance’s custody systems, enabling traders to earn yield on BUIDL while using it to support trading positions on the exchange.

A new BUIDL asset class will also launch on BNB Chain, expanding the tokens reach beyond Ethereum and opening it to a wider set of onchain applications, according to a blog post by Binance on Friday.

With the addition of BUIDL, Binance supports multiple yield-bearing tokenized assets, including Circle‘s USYC and OpenEden’s cUSDO.

BUIDL is BlackRock‘s first onchain liquidity fund — a tokenized, interest-bearing USD vehicle issued through Securitize. BlackRock, the world’s largest asset manager, oversaw roughly $13.4 trillion in assets as of Q3 2025.

Related: Securitize to go public in $1.25B BlackRock-backed merger

The rise of tokenized treasuries

As tokenized money-market funds shift from simple yield products to mainstream trading collateral, Binance joins a growing group of exchanges allowing qualified clients to post Treasury-backed tokens to back their positions.

In July, Deribit and Crypto.com began accepting BUIDL as collateral, giving institutional traders a low-volatility, yield-bearing asset they can use in place of cash or stablecoins.

In September, Bybit followed with support for QCDT, a Dubai Financial Services Authority (DFSA)-approved tokenized money-market fund backed by US Treasurys.

The trend echoes traditional finance, where companies often pledge Treasurys and money-market funds as collateral through bank-run triparty systems rather than keeping assets on a trading venue.

Tokenized US Treasurys have become the second-largest real-world assets (RWA) beyond stablecoins, with a current market cap of $8.57 billion, according to RWA.xyz data.

Source: RWA.xyz

The funds are led by BlackRock‘s BUIDL, with about $2.52 billion in total value, Circle’s USYC with $1.06 billion and Franklin Templetons BENJI, with $850 million.