BlackRock's BUIDL Tokenization to Enhance Trading on Binance's BNB Chain
In a significant advancement for onchain finance, Securitize, a leader in the tokenization of real-world assets, has teamed up with Binance, the foremost cryptocurrency exchange by trading volume and users. They have announced that the BlackRock USD Institutional Digital Liquidity Fund (known as BUIDL) will now be accepted as collateral for trading on the Binance platform. This marks a pivotal moment for BUIDL, solidifying its position as a cornerstone in the world of decentralized finance (DeFi).
With this new integration, BUIDL will streamline capital deployment for Binance's extensive user base, providing institutional and advanced traders with improved methods for managing their assets while maintaining exposure to tokenized U.S. Treasury yields. This initiative reflects a growing demand among institutional clients for more interest-bearing stable assets to use as collateral during active trading sessions.
Securitize's CEO, Carlos Domingo, emphasized that this development is not just a step forward for BUIDL but also a significant transformation in how regulated real-world assets interact with blockchain technologies. He noted that making BUIDL collateral on Binance’s platform extends its reach and enhances its utility in financial operations.
As part of this broader strategy, BUIDL is rolling out a new share class on the BNB Chain, which is recognized as one of the leading ecosystems within the blockchain space. This launch is anticipated to broaden access for investors and improve interoperability with various onchain financial applications, fostering an environment of innovation and flexibility.
Catherine Chen, the Head of VIP Institutional at Binance, stated that their institutional clients had been asking for more stable assets, and the integration of BUIDL fulfills this requirement. By collaborating with banking partners and a crypto-native custody provider, Ceffu, Binance aims to not only meet these market needs but also enhance compliance for its clients as they scale their asset allocations.
Sarah Song, from BNB Chain's Business Development team, highlighted the platform’s design for scalability, cost-efficiency, and security, indicating excitement about welcoming BUIDL into their ecosystem. She noted that BUIDL facilitates the transformation of real-world assets into programmable financial instruments, generating new investment strategies that can be executed on-chain.
Robbie Mitchnick, Global Head of Digital Assets at BlackRock, discussed how this milestone signifies a shift from tokenization as just an innovative concept to becoming a significant player in practical market applications. By enabling BUIDL to operate across various leading digital infrastructures, they aim to integrate foundational elements of traditional finance into the upcoming realm of onchain finance.
Initially launched in March 2024, BUIDL was BlackRock’s first fund to be tokenized on a public blockchain, leveraging the capabilities of Securitize. The fund provides qualified investors with access to U.S. dollar returns, complete with flexible custody options, daily dividend payments, and the ability to perform peer-to-peer transfers year-round.
This recent move builds upon BUIDL's established presence across several prominent networks, including Arbitrum, Aptos, Avalanche, Ethereum, Optimism, Polygon, and Solana. By broadening its adoption and accessibility, BUIDL signifies an essential player in the integration of traditional finance mechanisms with blockchain technology, laying the groundwork for further advancement in financial markets.
For detailed insights about BUIDL on BNB Chain, one can visit the Securitize website or explore Binance's banking solutions through their official page. As the cryptocurrency landscape continues to evolve, the partnership between Securitize and Binance serves as a promising indicator of the future directions for tokenized assets in the fintech environment.
With this new integration, BUIDL will streamline capital deployment for Binance's extensive user base, providing institutional and advanced traders with improved methods for managing their assets while maintaining exposure to tokenized U.S. Treasury yields. This initiative reflects a growing demand among institutional clients for more interest-bearing stable assets to use as collateral during active trading sessions.
Securitize's CEO, Carlos Domingo, emphasized that this development is not just a step forward for BUIDL but also a significant transformation in how regulated real-world assets interact with blockchain technologies. He noted that making BUIDL collateral on Binance’s platform extends its reach and enhances its utility in financial operations.
As part of this broader strategy, BUIDL is rolling out a new share class on the BNB Chain, which is recognized as one of the leading ecosystems within the blockchain space. This launch is anticipated to broaden access for investors and improve interoperability with various onchain financial applications, fostering an environment of innovation and flexibility.
Catherine Chen, the Head of VIP Institutional at Binance, stated that their institutional clients had been asking for more stable assets, and the integration of BUIDL fulfills this requirement. By collaborating with banking partners and a crypto-native custody provider, Ceffu, Binance aims to not only meet these market needs but also enhance compliance for its clients as they scale their asset allocations.
Sarah Song, from BNB Chain's Business Development team, highlighted the platform’s design for scalability, cost-efficiency, and security, indicating excitement about welcoming BUIDL into their ecosystem. She noted that BUIDL facilitates the transformation of real-world assets into programmable financial instruments, generating new investment strategies that can be executed on-chain.
Robbie Mitchnick, Global Head of Digital Assets at BlackRock, discussed how this milestone signifies a shift from tokenization as just an innovative concept to becoming a significant player in practical market applications. By enabling BUIDL to operate across various leading digital infrastructures, they aim to integrate foundational elements of traditional finance into the upcoming realm of onchain finance.
Initially launched in March 2024, BUIDL was BlackRock’s first fund to be tokenized on a public blockchain, leveraging the capabilities of Securitize. The fund provides qualified investors with access to U.S. dollar returns, complete with flexible custody options, daily dividend payments, and the ability to perform peer-to-peer transfers year-round.
This recent move builds upon BUIDL's established presence across several prominent networks, including Arbitrum, Aptos, Avalanche, Ethereum, Optimism, Polygon, and Solana. By broadening its adoption and accessibility, BUIDL signifies an essential player in the integration of traditional finance mechanisms with blockchain technology, laying the groundwork for further advancement in financial markets.
For detailed insights about BUIDL on BNB Chain, one can visit the Securitize website or explore Binance's banking solutions through their official page. As the cryptocurrency landscape continues to evolve, the partnership between Securitize and Binance serves as a promising indicator of the future directions for tokenized assets in the fintech environment.
Topics Financial Services & Investing）
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