Institutional demand for secure, yield-bearing digital assets continues to grow, and Binance's latest update signals stronger momentum ahead. The platform announced that it now accepts BlackRock's BUIDL token as collateral, adding a regulated, interest-earning asset to its institutional offering.
In brief
- Binance adds BlackRock's BUIDL token as collateral, providing institutions access to a regulated token backed by short-term US Treasury securities.
- BUIDL offers a yield close to 4% and is managed by Securitize, attracting businesses seeking secure digital assets with real-time settlement.
- Institutions value BUIDL for its robust collateral profile, alignment with compliance requirements, and support for derivatives and structured transactions.
- The launch of a new BUIDL share class on BNB Chain expands availability on a network with over $7.4 billion in total value locked.
Binance strengthens its institutional offering with the addition of BlackRock’s BUIDL
Binance introduced this change as trading volumes among large investors continued to increase. BUIDL, listed at $1, is backed by short-term U.S. Treasury bonds as well as other low-risk assets. Since the token was launched by BlackRock last year, its market capitalization has exceeded $2.5 billion.
Many institutions consider it a safer alternative to known stablecoins because it generates a return thanks to the underlying assets. Current returns are around 4%, while BlackRock charges management fees of 0.2% to 0.5%. Access is limited to qualified investors who commit to investing a minimum of $5 million in the BlackRock institutional USD digital liquidity fund.
BlackRock launched BUIDL in March 2024 as its first fund on a public blockchain. Its expansion to BNB Chain marks the next phase of its distribution, placing the token on a network with over $7.4 billion in total value locked. Securitize, the company responsible for managing and tokenizing the fund, oversees administration and digital transaction services.
Carlos Domingo, CEO of Securitize, said BUIDL appeals to institutional traders because it is perceived as high-value collateral, which can increase borrowing capacity on major platforms.
He added that interest in tokenized assets is growing because they enable near-instant settlement and reduce delays caused by traditional financial systems. Traditional ledgers often rely on outdated software, while blockchains provide direct records updated in real time.
New Share Class Coming to BNB Chain as Institutional Demand Accelerates
As part of the agreement with Binance, BlackRock will launch a new BUIDL share class on BNB Chain. Binance said the move follows sustained requests from institutions seeking compliant collateral, aligned with both its tri-party banking partners and its custody provider, Ceffu.
The growing adoption of BUIDL is driven by several important practical benefits for large financial firms:
- Pays a stable return guaranteed by US Treasury Bills.
- Integrates with established compliance frameworks for institutions.
- Provides solid collateral for derivative products and structured transactions.
- Enables rapid settlement using blockchain infrastructure.
- Operates under a regulated fund structure managed by Securitize.
Catherine Chen, Head of VIP & Institutional at Binance, said the addition of BUIDL strengthens the platform's connection to traditional finance and helps clients grow their positions with more confidence. This collaboration provides institutions with a clearer path to holding Treasury-backed digital assets while complying with internal controls and risk requirements.
Integrating BUIDL with our triparty banking partners and our crypto-native custody partner, Ceffu, meets their needs and allows our clients to expand their allocation with confidence while meeting compliance requirements.
Catherine Chen
With BUIDL now available on BNB Chain and accepted as collateral on Binance, institutional investors have broader access to regulated, yield-bearing tokens built on blockchain infrastructure. This development could attract more companies to tokenized assets in search of stable and interest-generating instruments in an increasingly active market.
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