Investment giant Blackrock is offering crypto exchanges Binance, OKX and Deribit to start using their BUIDL to provide collateral for futures trading, Bloomberg reports, citing its sources:

“The world’s largest asset manager and its brokerage partner Securitize are in early talks with some of the world’s largest crypto exchanges about using BlackRock’s new BUIDL token as collateral for derivatives trading, according to people familiar with the matter, who asked not to be identified to discuss private discussions. The exchanges include Binance, OKX and Deribit, the people said.”

Blackrock declined to comment. Let us remind you that#BUIDL(the full name of the fund is BlackRock USD Institutional Digital Liquidity Fund) is an RWA fund from #BlackRock. The#BUIDLtoken is backed by real assets - US Treasury bonds, US dollars and other traditional liquid instruments. BUIDL holders receive daily dividends from the yield on these instruments to their crypto wallets.

With a minimum investment of $5 million, BlackRock’s token is aimed at qualified institutional investors.#FalconXand #HiddenRoad, two of the largest crypto prime brokers, already allow#BUIDLto be used as collateral among their clients, which include hedge funds. On Thursday, custodian#Komainusaid that clients eligible to invest in BUIDL will be able to trade through Hidden Road using the token as collateral.

Accepting the coin directly as collateral on platforms like Deribit and Binance would significantly expand the potential market for BlackRock.

What does the#Blackrockinitiative mean in more detail? For the crypto market, it means increased integration of traditional finance and cryptocurrencies. Which increases trust and liquidity. The initiative can contribute to further growth of institutional investments in digital assets. And increase interest in cryptocurrencies in general.

In addition, the ability to use highly liquid interest-bearing assets such as BUIDL in futures trading could accelerate the growth of the derivatives market and increase trading volumes on leading crypto exchanges. In short, it's a positive one, no matter how you look at it.