Crypto.com and Deribit, have announced they will now accept BlackRock’s $2.9 billion tokenized money market fund, BUIDL, as collateral for institutional and experienced traders.
By accepting BUIDL as collateral, Crypto.com and Deribit are giving institutional and advanced traders the ability to post a yield-generating, low-volatility asset in place of idle or risky capital. This not only unlocks new capital efficiency but also allows traders to earn income on their collateral while maintaining exposure to the digital asset markets.
How BUIDL Collateral Works and Its Value
Until now, crypto traders seeking leverage had to use stablecoins that generate no yield or risk volatile assets like Bitcoin and Ether as collateral. This exposed them to double losses during market downturns. BUIDL changes the equation. Launched by BlackRock and tokenized by Securitize, BUIDL is a blockchain-based fund backed by U.S. Treasury securities and currently offers an attractive 4.5% annual yield.
Crypto.com, serving over 140 million users worldwide, will offer BUIDL as collateral to institutional clients. The offering will be across its full suite of trading services—including spot, margin, derivatives, and OTC markets. Deribit will permit institutional clients to use BUIDL for options, futures, and spot trading.
For traders, the benefits are clear:
- Yield on Collateral: With BUIDL’s 4.5% yield, collateral can now be productive, not just passive.
- Lower Margin Requirements: The fund’s stability allows exchanges to reduce minimum collateral thresholds, freeing up capital for other investments.
- Reduced Volatility Risk: BUIDL’s U.S. Treasury backing means less exposure to the wild price swings of crypto assets.
By incorporating BUIDL, exchanges not only present a novel product, but also indicate that tokenized Treasurys are poised to become significant rivals to stablecoins in the crypto collateral market.
The momentum may soon accelerate. Coinbase, the largest U.S. crypto exchange, is in the process of acquiring Deribit for $2.9 billion. If the deal closes, BUIDL could soon be available across Coinbase’s global infrastructure, embedding tokenized Treasurys even deeper into the crypto trading mainstream.
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