BUIDL Integration Enables Yield-Bearing Collateral for Institutions
Binance and BlackRock announced a partnership on November 14, which integrated the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) as accepted collateral for institutional trading. The deal marked a convergence of tokenized real-world assets (RWA) and crypto-native platforms.
The partnership allowed qualified investors to post BUIDL tokens as margin through Binance’s off-exchange settlement infrastructure. Catherine Chen, Head of VIP & Institutional at Binance, noted institutional clients requested interest-bearing stable assets for collateral during active trading. The integration with banking triparty partners and crypto-native custody provider Ceffu addressed capital efficiency needs.
BlackRock launched BUIDL in March 2024 as its first tokenized fund on public blockchain infrastructure. The fund offered US dollar-denominated yields with flexible custody and peer-to-peer transferability. Robbie Mitchnick, Global Head of Digital Assets at BlackRock, stated the integration helped bring foundational elements of traditional finance into on-chain finance. BUIDL operates as collateral across the digital market infrastructure.
Binance’s Banking Triparty solution mirrors traditional finance standards by enabling clients to hold collateral at regulated third-party banks. Assets are held with banking partners, while clients receive on-exchange credit for their trading activities. According to the statement, the framework reduced counterparty risk and provided transparency for institutional governance requirements.
BNB Chain Deployment Expands Multi-Chain Treasury Access
BlackRock has deployed a new BUIDL share class on BNB Chain to enable scalability and cost efficiency. Sarah Song, Head of Business Development at BNB Chain, explained that the network supported programmable financial instruments that unlocked new on-chain investment strategies. BUIDL’s expansion beyond Ethereum included Arbitrum, Aptos, Avalanche, Optimism, Polygon, and Solana.
BNB Chain confirmed BlackRock’s arrival brought the world’s largest tokenized real-world asset to one of crypto’s most active ecosystems. The deployment provided institutions with a means to utilize tokenized Treasuries through Binance’s collateral frameworks.
Changpeng Zhao, Binance founder, welcomed BlackRock to BNB Chain and noted the asset manager’s scale. Binance CEO Richard Teng described tokenization of real-world assets as shaping the future of finance. The acceptance of BUIDL as off-exchange collateral made that future more accessible for institutions and traders. Teng called it a pivotal milestone for on-chain finance.
Tokenized RWA Market Reaches $23 Billion Across Platforms
Tokenized real-world assets climbed from $8.6 billion at the start of 2025 to roughly $23 billion by November. The 260% jump reflected the broader integration of regulated assets into the crypto infrastructure. US Treasuries and private credit comprised more than 90% of the sector.
On-chain US Treasuries grew from under $1 billion in early 2024 to over $7 billion by mid-2025. Tokenized Treasury funds captured about $5.5 billion by April 2025. BlackRock’s BUIDL held approximately 45% of that market. Franklin Templeton, Ondo, and OpenEden issued competing products.
Carlos Domingo, Co-founder and CEO of Securitize, noted that regulated real-world assets are being moved on-chain, unlocking utility previously out of reach. Tokenization evolved from concept to operational infrastructure. Binance has joined other platforms that accept BUIDL and similar tokens as collateral. Deribit and Crypto.com used sBUIDL wrappers for derivatives trading.
DeFi Protocols Layer RWA Collateral Into Lending Markets
Securitize and Avalanche pushed BUIDL into DeFi through sBUIDL, a token backed one-to-one by the fund. Euler Finance on Avalanche integrated sBUIDL as collateral for stablecoin borrowing. Users converted institutional Treasury funds into margin inside lending protocols.
Additionally, BlackRock's fund is tied indirectly to DeFi money markets through RWA-backed stablecoins. Pendle tokenized yield streams from RWA-backed stablecoins into principal and yield tokens. The protocol settled roughly $70 billion in fixed yield with growing exposure to RWA-linked assets. Maker added T-bills to DAI backing years earlier, creating a live example of borrowing against tokenized RWAs at scale.
Coinbase acquired Echo to build infrastructure for tokenized securities and real-world assets. The company told Reuters it sought SEC approval to offer tokenized equities alongside spot crypto. XDC Network and FCA-regulated exchange Archax listed tokenized money-market funds from abrdn, Fidelity, BlackRock, and State Street.
Binance added Hashnote’s USYC and cUSDO in July before integrating BUIDL in November. The exchange framed BUIDL as joining an existing roster of tokenized yield assets. BlackRock’s integration is the latest development demonstrating how infrastructure, regulated assets, and trading platforms converge in operational on-chain finance.