A Major Step in Onchain Finance as BUIDL Gains Collateral Utility and Expands to a New Network

BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), tokenized by Securitize, is gaining two significant upgrades: it is now eligible as off-exchange collateral for trading on Binance, and it is launching a new share class on BNB Chain. The developments give institutional and advanced U.S. crypto users additional ways to deploy capital, maintain exposure to tokenized Treasuries, and interact with one of the world’s largest blockchain ecosystems.

Key Launch Details

Product: BlackRock USD Institutional Digital Liquidity Fund (BUIDL)
Tokenization Provider: Securitize
New Utility: Accepted as off-exchange trading collateral on Binance
Additional Upgrade: New share class launched on BNB Chain
Target Users: Institutional traders, sophisticated market participants, and investors in tokenized Treasuries

Core Highlights

• BUIDL becomes a recognized collateral asset for off-exchange settlement on Binance
• Binance integrates the fund with its banking triparty partners and crypto-native custody partner Ceffu
• BUIDL expands to BNB Chain, enabling new interoperability with decentralized financial applications
• Expansion strengthens onchain liquidity, Treasuries tokenization, and multi-chain distribution

Why This Launch Matters

Institutional Traders Want Yielding Collateral

Large trading desks increasingly want collateral that earns yield while being deployed in active markets. BlackRock’s BUIDL provides exposure to U.S. dollar–based assets and daily dividends. By enabling the fund as collateral, Binance gives clients a more capital-efficient structure: maintain trading liquidity while avoiding idle assets.

Onchain Finance Is Maturing

Tokenized Treasuries have gained traction as institutions explore regulated digital asset rails. BUIDL, launched in 2024, was BlackRock’s first public-chain tokenized fund. With its acceptance as collateral and its expansion to a major blockchain ecosystem, the fund is continuing to shift tokenization from an experimental idea to a functional tool for real market use.

BNB Chain Access Broadens Interoperability

By launching a share class on BNB Chain, BUIDL expands its presence across the Web3 landscape. Investors gain the ability to move tokenized Treasuries into applications built on a low-cost, high-throughput network — enabling strategies that previously required multiple intermediaries.

Feature Breakdown — What’s New and How It Works

1. BUIDL Now Accepted as Collateral on Binance

Traders on Binance can now use BUIDL as off-exchange collateral, unlocking benefits such as:

• better capital utilization
• reduced exchange-held assets
• continued exposure to yield-generating, tokenized U.S. Treasuries

This model aligns with the industry shift toward off-exchange settlement, where assets are custodied with trusted partners while exchanges facilitate execution.

Official Explanation from Securitize

“BUIDL’s expansion to BNB Chain and its use as collateral on Binance further extends its reach and utility,” said Carlos Domingo, Co-founder and CEO of Securitize. “We’re continuing to bring regulated real-world assets onchain while unlocking new forms of utility that were previously out of reach.”

2. BNY Chain Share Class Broadens Onchain Access

The new BNB Chain share class gives investors:

• lower-cost transactions
• faster settlement
• seamless access to DeFi infrastructure built on BNB Chain

BNB Chain leadership emphasized the strategic alignment:
“BNB Chain is designed for scalable, low-cost, and secure financial applications, and we’re excited to welcome BUIDL to our ecosystem,” said Sarah Song, Head of Business Development at BNB Chain.

3. Meeting Institutional Collateral Requirements

Institutional traders require compliant custody options when posting collateral. Binance’s integration includes:

• banking triparty partners
• Ceffu, its crypto-native institutional custody provider

This setup supports operational and compliance demands for high-volume trading desks.

Catherine Chen, Head of VIP & Institutional at Binance, noted:
“Our institutional clients have asked for more interest-bearing stable assets they can hold as collateral while actively trading on our exchange.”

4. Reinforcing Tokenization as a Market Utility

BlackRock highlighted the industry-wide implications:
“By enabling BUIDL to operate as collateral across leading digital market infrastructure, we’re helping bring foundational elements of traditional finance into the onchain finance arena,” said Robbie Mitchnick, Global Head of Digital Assets at BlackRock.

Industry Context

Tokenized Funds Are Expanding Across Major Chains

BUIDL is already available on multiple networks including:

• Arbitrum
• Aptos
• Avalanche
• Ethereum
• Optimism
• Polygon
• Solana

The addition of BNB Chain increases multi-chain coverage and positions BUIDL as one of the most widely distributed tokenized Treasury funds in the market.

Institutional Crypto Trading Is Shifting Off-Exchange

With global regulatory discussions around custody and counterparty risk, more institutional activity is moving toward triparty arrangements and segregated holdings. This launch aligns with that momentum.

Onchain Treasuries Are Becoming a New Asset Class

As yield-bearing RWAs gain adoption, tokenized Treasuries are evolving into:

• collateral assets
• liquidity instruments
• yield products
• building blocks for onchain finance

BUIDL has become one of the most prominent examples of this shift.

What Happens Next

More Integrations Likely

With BUIDL now active on BNB Chain and recognized as collateral by Binance, additional platforms and financial applications may adopt the tokenized fund for settlement, margining, or liquidity purposes.

Room for Wider Institutional Usage

Given BlackRock’s scale and Securitize’s regulatory positioning, BUIDL is well-placed to expand into:

• more custody partners
• institutional lending desks
• multi-chain DeFi liquidity layers

Growing Role in Onchain Markets

If adoption continues, BUIDL could become a core part of the emerging digital market infrastructure — serving as yield-bearing collateral across both centralized and decentralized systems.

The Bottom Line

BUIDL’s acceptance as Binance collateral and its expansion to BNB Chain mark a significant step forward for tokenized financial products. By giving institutional traders a yield-generating collateral option and broadening access across a major blockchain network, BlackRock, Securitize and Binance are moving onchain finance closer to real, scalable market utility. These developments underscore how tokenization is shifting from a concept to an operational part of the digital asset economy — and they highlight BUIDL’s growing role at the center of that transition.

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