BlackRock has taken a significant step forward in expanding its influence within the digital asset ecosystem by extending the reach of its $2.5 billion tokenized fund, the USD Institutional Digital Liquidity Fund (BUIDL), to Binance and BNB Chain. The move, jointly announced by Securitize and Binance, positions BUIDL as an accepted form of off-exchange collateral on the world’s largest cryptocurrency exchange.
Originally launched in March 2024, BUIDL represents BlackRock’s first foray into tokenized funds on a public blockchain. The fund allows accredited investors to access U.S. dollar-denominated yields while benefiting from modern blockchain features like flexible custody, daily dividend distributions, and instant peer-to-peer transfers.
Unlike traditional stablecoins such as USDT or USDC, BUIDL offers a unique value proposition: it not only maintains a stable value, but also distributes yield generated from its underlying U.S. Treasury reserves directly to investors. This yield currently hovers around 4%, with BlackRock charging a management fee between 0.2% and 0.5%.
The fund is tailored for institutional participants, including hedge funds and private equity firms, with a minimum investment threshold of $5 million. These investors can now use BUIDL as collateral for crypto derivatives trading on Binance, expanding the token’s utility in high-volume trading environments.
Carlos Domingo, CEO of Securitize, emphasized the growing appeal of tokenized assets, citing their ability to accelerate settlement times and reduce friction in capital markets. He criticized the outdated infrastructure of traditional finance, arguing that blockchain-based solutions offer unparalleled efficiency in managing and transferring assets.
Catherine Chen, who leads Binance’s VIP & Institutional division, also highlighted that the addition of BUIDL comes in direct response to institutional demand. She noted that the integration with Binance’s banking triparty network and custody partner Ceffu allows clients to expand their exposure to digital assets while staying compliant with regulatory frameworks.
In tandem with its Binance integration, BUIDL will introduce a new share class on the BNB Chain. This development is expected to broaden investor access and improve interoperability with decentralized finance (DeFi) applications. By leveraging the scalability and low-cost transactions of BNB Chain, BUIDL enhances its appeal to both centralized and decentralized market participants.
BUIDL’s expansion isn’t limited to BNB Chain. The fund is already interoperable with several major blockchain networks, including Ethereum, Solana, Polygon, Avalanche, Arbitrum, Optimism, and Aptos. This cross-chain accessibility strengthens BUIDL’s position as a versatile tool for institutional investors navigating the evolving digital asset landscape.
Despite the strategic advancements, Binance’s native token BNB has been facing market headwinds. At the time of writing, BNB trades at $931.60, reflecting a 20% decline over the past month and sitting 32% below its all-time high of $1,369 reached in October 2024.
The integration of BUIDL into Binance comes at a time when tokenization of real-world assets (RWAs) is gaining momentum. Financial institutions are increasingly exploring blockchain-based representations of traditional securities as a way to improve liquidity, transparency, and operational efficiency. BlackRock’s initiative is emblematic of this trend, showcasing how legacy financial players are adapting to the decentralized economy.
By launching BUIDL on public blockchains and embracing DeFi infrastructure, BlackRock paves the way for greater adoption of tokenized financial instruments. The involvement of Securitize also plays a crucial role, as the firm provides the technological and regulatory framework necessary to onboard institutional investors in a compliant manner.
Another key advantage of BUIDL is its compatibility with both traditional custodians and crypto-native solutions. Investors can choose to store their holdings with regulated custodians or manage them through decentralized wallets, depending on their risk profiles and operational needs.
Furthermore, the ability to settle trades instantly using blockchain infrastructure could have profound implications for capital efficiency. In traditional finance, settlement delays can tie up capital and increase counterparty risk. BUIDL’s blockchain-native architecture offers a solution by enabling near-instantaneous settlement, reducing friction and freeing up liquidity.
The timing of this expansion is also notable, as regulatory scrutiny around stablecoins and crypto exchanges intensifies globally. By offering a token backed by U.S. Treasuries and adhering to institutional compliance standards, BlackRock positions BUIDL as a more trusted and regulated alternative to other stablecoins, potentially appealing to conservative investors and regulators alike.
As the digital asset landscape matures, products like BUIDL could become essential components of institutional portfolios. Their ability to marry traditional financial returns with the flexibility and transparency of blockchain may redefine how capital is allocated and managed in the coming years.
In summary, BlackRock’s decision to expand BUIDL onto Binance and BNB Chain represents more than just a technical upgrade—it reflects a broader shift in how institutions are beginning to engage with blockchain-based finance. With its yield-bearing structure, regulatory compliance, and integration across key networks, BUIDL is poised to play a pivotal role in the evolving landscape of digital finance.