Binance, the world's largest cryptocurrency exchange, is expanding its collateral options for institutional traders by integrating BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) as off-exchange collateral. This move provides Binance VIP and Institutional users with the ability to hold BUIDL off-exchange while still utilizing it for trading on the platform. BUIDL will also launch a new share class on the BNB Chain network, enhancing accessibility and interoperability across on-chain applications.
BUIDL, launched by BlackRock in March 2024, is the company's first tokenized fund issued on a public blockchain. The fund is tokenized by Securitize and offers qualified investors access to U.S. dollar-denominated yields with features like daily dividend payouts, 24/7 transferability, and compatibility with regulated custodians. BUIDL holds funds in U.S. dollars, short-term treasury bills, and REPO agreements. As of November 2025, BUIDL has approximately $2.5 billion in assets under management.
This integration provides institutional users with a regulated, yield-bearing instrument for use as collateral while trading on Binance. Binance's off-exchange settlement solutions, including Binance Banking Triparty and MirrorRSV, allow institutions to hold collateral with third-party custodians while accessing Binance's liquidity. Binance Banking Triparty is a custodial solution that separates asset custody from trading execution, enabling users to pledge fiat or fiat-equivalent collateral, such as U.S. Treasury Bills, held at a regulated third-party banking partner. MirrorRSV, developed by Ceffu, Binance's institutional crypto custody partner, allows users to trade on Binance while assets remain in segregated cold wallets, fully verifiable on-chain.
Catherine Chen, Head of VIP & Institutional at Binance, stated that institutional clients have been seeking more interest-bearing stable assets to hold as collateral while actively trading. Integrating BUIDL with Binance's banking triparty partners and Ceffu meets this demand, enabling clients to scale allocation confidently while meeting compliance requirements.
The integration of BUIDL into Binance's collateral infrastructure strengthens the exchange's off-exchange settlement solutions. It allows institutional clients to benefit from yield-bearing tokenized assets, secure custody, and Binance's deep liquidity. Robbie Mitchnick, Head of Digital Assets at BlackRock, emphasized that using BUIDL as collateral in the digital market infrastructure helps integrate traditional finance elements into the on-chain finance sphere.
The move also signals a shift in the architecture of digital-asset markets, with traditional financial instruments starting to compete directly with stablecoins at the core of crypto's collateral plumbing. Tokenized money market funds like BUIDL offer access to real-world yields, which stablecoins do not inherently provide.
BUIDL's expansion to the BNB Chain provides qualified investors exposure to tokenized U.S. dollar yields on a high-performance, low-cost network. Sarah Song, Head of Business Development at BNB Chain, expressed excitement about welcoming BUIDL to the ecosystem, stating that it enables entirely new types of investment strategies on-chain. The integration with BNB Chain enhances BUIDL's operational cross-chain compatibility and allows investors to utilize the asset in DeFi applications within the ecosystem.
