BlackRock has brought its roughly $2.5 billion BUIDL money market fund onto crypto exchange OKX, giving traders a new way to post yield‑bearing collateral. Under this setup, Standard Chartered holds tokens of the BlackRock USD Institutional Digital Liquidity Fund in regulated custody while OKX shows them as usable margin.
BUIDL launched in March 2024 as BlackRock’s first tokenized fund on Ethereum, offering qualified investors dollar yield from cash, U.S. Treasury bills, and repo agreements. It maintains a target value of 1 dollar per token and pays accrued dividends directly to investors’ wallets as new tokens each month.
How BUIDL Collateral Works on OKX
The OKX integration uses a collateral‑mirroring framework. The exchange and Standard Chartered first piloted it in 2025 with Franklin Templeton’s BENJI tokenized fund under Dubai’s VARA regime. In the “off‑exchange” path, BUIDL stays in Standard Chartered custody.
OKX then reflects it as collateral on a mirror ledger for clients that want bank‑grade custody and minimal exchange risk. In the “on‑exchange” path, traders can hold BUIDL directly on OKX. They can also use it as a yield‑bearing margin for derivatives and leveraged strategies.
That structure lets institutions avoid leaving idle cash on the exchange. It also helps them meet margin requirements while earning interest on the underlying fund.
Growing Role of Tokenized Money Market Funds
BUIDL has grown into one of the largest tokenized money market funds on public blockchains, with a market cap of around 2.5 billion dollars and multi‑chain availability across Ethereum, Arbitrum, Avalanche, Optimism, Polygon, and Aptos. BlackRock and tokenization partner Securitize pitch it as a high‑quality, yield‑bearing alternative to traditional stablecoins for big trading firms.
By late 2025, Binance had already accepted BUIDL as collateral. DeFi protocols like Aave and Sky (formerly MakerDAO) had also integrated it. OKX is now the third major exchange to plug BUIDL into a collateral system within about six months. This shift signals that tokenized Treasuries are becoming standard building blocks for both centralized and decentralized markets.
BlackRock’s move targets the large pools of idle cash that often sit on exchanges between trades. With BUIDL, institutions can keep that capital in a regulated money market fund, earn yield from Treasuries, and still deploy it quickly as margin on OKX when they want to trade.
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