Asset management giant BlackRock is reportedly in talks with a number of cryptocurrency exchange platforms about using its proprietary token BUIDL as collateral for derivatives contracts.
According to a new report from Bloomberg, anonymous people familiar with the matter said the world’s largest asset manager is exploring the idea of using BUIDL, a crypto asset associated with the company’s tokenized mutual fund, as collateral for trading derivatives contracts. .
Launched in March of this year, BUIDL, which stands for BlackRock USD Institutional Digital Liquidity Fund, is a tokenized money market fund designed to provide blue-chip traders with a stable value of $1 per token built on the Ethereum (ETH) blockchain. Yield.
Bloomberg has revealed that BlackRock is in talks with Binance, the world’s largest cryptocurrency exchange by trading volume, as well as cryptocurrency exchanges including OKX and Deribit.
Previously, it was reported that this fund invests in cash, U.S. Treasury bonds, and repurchase agreement bonds, and sends dividends directly to investors’ wallets in new tokens every month.
Robert Mitchnick, head of digital assets at BlackRock, said in a press release issued by Securitize, BlackRock’s brokerage partner:
“(BUIDL) is the latest advancement in digital asset strategy. “We are focused on developing solutions in the digital asset space that help solve real problems for our customers.”
Last April, stablecoin issuer Circle launched a new smart contract feature that allows BUIDL holders to convert their tokens to USDC. At the time, Circle’s chief executive, Jeremy Allaire, said the new features would “allow investors to quickly move away from tokenized assets, lowering costs and eliminating friction.”
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