Binance Adds BlackRocks $2.5B BUIDL as Collateral for Crypto Trading

Binance exchange will accept BlackRock-backed BlackRock USD Institutional Digital Liquidity Fund (BUIDL) as trading collateral. The leading cryptocurrency exchange by globally registered users daily trading volume, will add support for BUIDL stablecoin as collateral for crypto trading to its millions of users.

Binance Increases Ties with Institutional Investors Via BlackRocks BUIDL

According to Catherine Chen, Binances Head of VIP and institutional adoption, the integration of the BlackRock-backed BUILD reaffirms its commitment to increasing ties with traditional financial (TradFi). Notably, BlackRock has collaborated with Securitize to issue BUIDL tokens, which are mostly backed by U.S. treasury bills.

“Integrating BUIDL with our banking triparty partners and our crypto-native custody partner, Ceffu, meets their needs and enables our clients to confidently scale allocation while meeting compliance requirements,” said Chen.

According to Carlos Domingo, the CEO of Securitize, BUIDL is highly attractive to institutional traders due to its reliable yield of around 4%. Additionally, Domingo noted that exchanges, such as Deribit, have been listing BUIDL due to its reliability of high liquidity as holders get to borrow more.

“In capital markets, every transaction involves updating a ledger. Right now, the ledgers are built on software from the 1970s, and the process is siloed,” said Domingo.

Whats the Expected Market Impact on Both Entities On Binance: more liquidity and institutional confidence

The strategic integration of BlackRocks BUIDL with Binance will have a profound impact on the exchange market. Already, Binance has grown to more than 297 million registered global users and a dozen institutional investors.

Binance co-founder Changpeng Zhao reiterated the companys commitment to building products that users need. Moreover, Binance will significantly benefit from a stablecoin surge, which adds liquidity amid the mainstream adoption of crypto assets.

Related: Larry Fink Declares the ‘Great Repotting’: BlackRocks Plan to Move All of TradFi On-Chain

According to on-chain data analysis from CryptoQuant, Binances stablecoin reserves increased by more than $5.76 billion during the past 30 days. Earlier this week, Binance released a report, which noted that more users, including institutions, have benefited from highly liquid stablecoins due to their reliable low-risk interest.

Source: CryptoQuant

On BlackRocks BUIDL: Competitive edge among other stablecoins

The strategic integration of BlackRocks BUIDL with Binance will play a crucial role in its mainstream adoption. Currently available on several blockchains – including Ethereum, Solana, Arbitrum, and Aptos – BUIDL will soon be available on the BNB chain.

As such, BUILD is well-positioned to grow exponentially from a market cap of around $2.5 billion at press time. Furthermore, the listing of BUIDL on Binance will enhance its trading volume, which has remained significantly low among traditional crypto exchanges.

As such, BUIDL will get more competitive among its peers, U.S. dollar-backed stablecoins such as Tether USDT, and Circles USDC.

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