TechFlow news, according to Bloomberg, citing sources familiar with the matter, asset management firm BlackRock and its brokerage partner Securitize are holding preliminary talks with several major cryptocurrency exchanges about using BlackRock's new BUIDL token as collateral for derivatives trading. The exchanges include Binance, OKX, and Deribit. BlackRock's token has a minimum investment of $5 million and is designed for qualified institutional investors.
Brokerage firms FalconX and Hidden Road already allow their clients, including hedge funds, to use BUIDL as collateral. Custodian Komainu said Thursday that clients eligible to invest in BUIDL will be able to use the token as collateral to trade via Hidden Road.
Like other money market funds and most stablecoins, BUIDL holds a value of $1, investing in U.S. Treasury bills, cash, and repurchase agreements. However, unlike stablecoins such as Tether’s USDT and Circle’s USDC, BUIDL pays interest to holders, which could increase its appeal to derivatives traders.
