Blackrock Targets $3 Trillion with BUIDL Token

Blackrock, the world’s largest asset manager, is making moves to enter the rapidly growing $3 trillion crypto derivatives market. The firm is reportedly in talks to have its BUIDL token accepted as collateral for trades on major exchanges like Binance, OKX, and Deribit. This push could mark a significant shift in the way institutional investors engage with the crypto sector.

BUIDL, part of Blackrock’s USD Institutional Digital Liquidity Fund, offers interest to its holders, distinguishing it from other widely-used stablecoins like Tether (USDT) and Circle (USDC). With a minimum investment of $5 million, BUIDL is geared toward institutional players, aiming to provide a new collateral option in the crypto derivatives market.

Collaborating with brokerage partner Securitize, Blackrock is working to integrate BUIDL into major cryptocurrency exchanges. While Binance and OKX have not commented on the development, Deribit’s CEO, Luuk Strijers, confirmed the exchange is considering BUIDL, though regulatory and technical challenges remain.

As part of the rollout, crypto custodian Komainu announced that its eligible clients could now use BUIDL as collateral in trades through Hidden Road, a prime broker also supporting the token. Falconx, another prime brokerage, has already begun allowing its hedge fund clients to use BUIDL for crypto trades.

The potential acceptance of BUIDL as collateral comes as the crypto derivatives market continues to dominate the space. In September alone, over $3 trillion in derivatives contracts were traded, accounting for more than 70% of total crypto trading volumes. If successful, Blackrock’s token could provide traders with a new, interest-bearing alternative to existing collateral options, potentially reshaping the landscape of the crypto derivatives market.