BlackRock is negotiating with some major cryptocurrency exchanges to promote its token BUIDL as collateral for cryptocurrency derivatives trading

2024-10-19 08:29:59

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ChainCatcher news, according to Bloomberg, informed sources revealed that asset management company BlackRock and its brokerage partner Securitize are in preliminary negotiations with several large cryptocurrency exchanges to discuss using BlackRock's new BUIDL token as collateral for derivative trading. These exchanges include Binance, OKX, and Deribit. BlackRock's token has a minimum investment of $5 million and is designed for qualified institutional investors.

Two brokers, FalconX and Hidden Road, have already allowed their clients (including hedge funds) to use BUIDL as collateral. Custodian Komainu stated on Thursday that clients eligible to invest in BUIDL will be able to use the token as collateral to trade through Hidden Road.

Like other money market funds and most stablecoins, BUIDL's value is pegged at $1, with its investments including 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 may increase its appeal to derivative traders.

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