The largest tokenized U.S. Treasury fund, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), can now be used as collateral on two of the most active crypto trading platforms, Crypto.com and Deribit, issuer Securitize said in a Wednesday press release.
The listings allow institutional traders to post BUIDL tokens as margin for leveraged trades on those two exchanges, while also earning yield on the underlying token.
The tokenized Treasury market is one of the fastest-growing sectors among tokenized assets, growing about 400% in the past year to over $7 billion in market capitalization, rwa.xyz data show. These tokens let investors earn a yield on their idle cash, just like a money market fund, but without leaving the blockchain environment. They are also increasingly being used as collateral for trading.
With $2.9 billion in assets, BUIDL is the largest of the tokenized Treasury funds and is backed by a short-term yield-bearing portfolio of cash and U.S. Treasuries.
“Tokenized Treasuries are being actively used to improve capital efficiency and risk management across some of the industry’s most sophisticated trading venues, while still offering yield,” Securitize CEO Carlos Domingo said in the statement. “The [BUIDL] fund is evolving from a yield-bearing token into a core component of crypto market infrastructure.”