BlackRock’s $2.5B Tokenized Treasury Fund Gains New Utility as Binance Approves It for Institutional Collateral

BlackRock’s fast-growing tokenized U.S. Treasury fund, known as BUIDL, has taken another step into mainstream digital finance after Binance announced that the fund will now be accepted as collateral for institutional trading. The move, revealed in a joint statement on Friday, expands the fund’s utility and allows investors to use a blockchain-based version of U.S. Treasuries within one of the world’s largest crypto trading ecosystems.

Issued by Securitize, the BUIDL fund has become one of the largest tokenized asset products in the world, with more than US$2.5 billion in assets under management. The fund converts short-term U.S. Treasuries into blockchain tokens, giving investors access to real-world yield through digital assets.

Binance’s decision marks a major milestone for the tokenized finance sector, allowing BUIDL to serve as off-exchange collateral. Instead of posting assets directly on the exchange, institutional traders can now hold BUIDL tokens with a designated custody partner while still using them to secure positions on Binance. Industry analysts say this method offers a more secure, flexible, and compliant structure for institutions operating in tightly regulated environments.

The arrangement is expected to appeal to large trading firms that wish to maintain control of their assets while participating in high-volume crypto markets. By keeping BUIDL tokens with a custodian, institutions can avoid concentration risks, reduce counterparty exposure, and benefit from the underlying yield generated by U.S. Treasuries, all while continuing to trade on Binance’s platform.

The partnership also arrives as tokenized real-world assets (RWAs) gain global traction. Financial institutions, sovereign wealth funds, and asset managers have increasingly turned to blockchain-based versions of traditional financial products to improve settlement efficiency, reduce operational costs, and enhance liquidity across markets. BlackRock’s BUIDL fund has emerged as a flagship example of how tokenized bonds can function reliably and at scale.

In addition to being integrated into Binance’s institutional trading services, the BUIDL token has now expanded to the BNB Chain ecosystem. This move will allow developers, DeFi platforms, and fintech firms to build new applications around the token, potentially unlocking additional use cases across lending, liquidity provisioning, and settlement systems. The expansion aligns with broader industry efforts to make tokenized treasury products interoperable across multiple blockchain networks.

Executives from both BlackRock and Securitize say the collaboration reflects a growing convergence between traditional finance and blockchain innovation. As more institutions explore tokenization, they expect products like BUIDL to play a foundational role in future financial infrastructure.