BlackRock announced that its tokenized fund BUIDL was accepted as collateral on Binance and launched a new share class on BNB Chain. The move lets institutional clients use tokenized holdings in U.S. Treasuries as collateral while continuing to earn on‑chain yield. The development directly affects institutional traders, custodians and DeFi protocols that integrate real‑world assets.
BUIDL (BlackRock USD Institutional Digital Liquidity Fund) is a tokenized money market fund investing primarily in U.S. Treasury bills and cash, paying interest daily to token holders, according to the firm. Tokenized by Securitize, the fund surpassed $1,000M in AUM in March 2025 and reached about $2.5B in November 2025, consolidating itself as the largest tokenized money market fund on public blockchains, according to cited sources.
Binance integrated BUIDL as off‑exchange collateral for institutional clients, enabling positions secured with tokens that represent exposure to U.S. Treasuries and generate yield while trading continues. “Our institutional clients have asked for more interest‑bearing assets that they can hold as collateral while they operate on the exchange,” said Catherine Chen, Head of VIP & Institutional at Binance. The acceptance as collateral aims to improve capital efficiency and reduce reliance on volatile assets for collateral purposes.
The expansion to BNB Chain adds a multichain layer to BUIDL’s distribution strategy: the fund was already on Ethereum and Avalanche and now adds BNB Chain to enhance interoperability and transaction cost efficiency within that ecosystem. Sarah Song, head of business development at BNB Chain, highlighted the network’s capacity for scalable, low‑cost financial applications. BUIDL already appears integrated into DeFi protocols like Euler (on Avalanche) and products like UStb, suggesting use as collateral in loans and on‑chain markets, according to the announcements.
The BlackRock fund and its growing institutional adoption
The arrangement increases institutional adoption of tokenized assets by offering a yield‑generating collateral solution. It also improves balance‑sheet efficiency for institutional traders by allowing them to maintain yield while trading and reinforces capital flows toward chains and protocols that enable RWA integration.
Practical integration raises custody, compliance and liquidity considerations, especially in times of stress: using tokenized collateral amplifies the need for triparty frameworks and custody partners, and the availability of the asset as collateral will depend on acceptance by other infrastructures. Multichain expansion may also fragment liquidity across networks, requiring careful coordination by participants.
The immediate next step is to observe effective adoption by institutional clients and the extension of BUIDL’s use as collateral across other infrastructures and protocols; the measure marks a checkpoint to evaluate how tokenized RWAs impact liquidity and risk structures in crypto markets.
