BlackRock’s BUIDL Fund: The New Gold Standard for Crypto Collateral? 💰

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So, it seems BlackRock has decided to dip its toes into the wild world of crypto with its shiny new USD Institutional Digital Fund, affectionately dubbed BUIDL. Yes, you heard that right—BUIDL! It’s like they took a corporate board meeting and a hipster coffee shop, blended them together, and voilà! Now, you can use this fund as collateral on Crypto.com and Deribit, two of the biggest playgrounds for crypto traders. Who knew finance could be so… trendy? 😏

Michael Sonnenshein, the COO at Securitize, declared this a “major turning point.” I mean, when was the last time you heard someone say that about a fund? It’s like announcing that your cat finally learned to use the litter box. But hey, at least it gives investors another option for collateral, right? Thanks, Forbes, for the scoop on June 18—because we all needed another reason to stay up at night worrying about our investments.

BUIDL is BlackRock’s first Ethereum-based tokenized money market fund, which is a fancy way of saying it’s backed by US Treasuries. It’s like taking your grandma’s old savings account and turning it into a digital asset. Now you can trade these traditional financial products as cryptographic tokens on blockchains. Because why not? Let’s throw some tech jargon into the mix and call it innovation! 🎉

“BlackRock’s $2.9B tokenized Treasury fund $BUIDL is now live on Deribit, and accepted as yield-bearing collateral.”

Read more via @Forbes

— Deribit (@DeribitOfficial) June 18, 2025

Keep on BUIDLing

Crypto investors have long faced a dilemma: do you use stablecoins that barely generate a return, or do you gamble with volatile crypto assets that could send your portfolio into a tailspin? It’s like choosing between a boring salad and a spicy taco that might just give you heartburn. But now, there’s a third option that’s both stable and yield-generating. It’s like finding out your salad comes with a side of nachos! 🌮

BUIDL currently pays around 4.5% annually, which is better than most high street banks. Who knew that the secret to financial success was just a little bit of crypto magic? And because it’s less risky, exchanges can offer lower minimum collateral requirements. It’s like they’re saying, “Hey, we trust you not to blow it all on meme coins!”

“We’re really starting to see not just the emergence but a real solidification of tokenized securities becoming a challenger to stablecoins,” Sonnenshein said. It’s like watching the underdog finally get their moment in the spotlight. Who knew tokenized securities could be so… dramatic?

“They’re now becoming what we would consider programmable productive capital, as opposed to just a passive investment instrument used for yield or a safe place to park capital.”

BUIDL has grown to a whopping $2.9 billion in assets under management since its launch in March 2024. That’s a lot of zeros! Meanwhile, Crypto.com is rolling it out to institutional clients across all trading services, and Deribit, which was acquired by Coinbase, is getting in on the action for futures and options trading. It’s like a financial buffet, and everyone’s invited! 🍽️

Deribit CEO Luuk Strijers mentioned that 80% to 85% of their business is institutional. Apparently, they’re attracting traditional firms that don’t hold much crypto but are sitting on piles of dollars, just waiting to cash in on some yield. It’s like watching your neighbor finally decide to join the block party after years of hiding behind their curtains.

RWA Tokenization Outlook

The tokenized real-world-asset sector is currently sitting just shy of a record $24 billion tokenized on-chain, according to RWA.xyz. That’s a lot of digital assets! It’s seen more than 50% growth since the beginning of the year, and BUIDL holds the largest market share with 12%. Talk about making a splash!

Ethereum remains the industry standard for tokenized RWA, boasting a network market share of almost 60%. It’s like the cool kid in school that everyone wants to be friends with. So, buckle up, folks! The world of crypto is getting more exciting by the minute, and who knows what’s next? Maybe a tokenized cat video? 🐱

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2025-06-20 07:09