BNB News Update: BUIDL Connects Conventional Finance with Blockchain for Institutional Trading

Binance has revealed it will now accept BlackRock's tokenized U.S. Treasury fund, BUIDL, as collateral for institutional trades outside the exchange, representing a notable advancement in merging traditional financial instruments with blockchain technology. This initiative, developed in partnership with

and Securitize, also introduces a new BUIDL share class on the Chain, broadening its reach to a total of eight blockchain networks. This move highlights the increasing appetite among institutions for yield-generating, dollar-linked assets that can be used flexibly as collateral while adhering to regulatory standards .

BUIDL, which holds more than $2.5 billion in assets, acts as a stable, interest-earning digital token backed by U.S. Treasury securities. By allowing BUIDL to be used as collateral on Binance, institutional clients can utilize the token without transferring ownership to the exchange, letting them retain exposure to tokenized Treasuries and maximize capital efficiency

. Catherine Chen, who leads VIP & Institutional at Binance, pointed out that this meets institutional traders' demand for "yield-bearing stable assets that can be held as collateral while trading actively on our platform" . The integration also involves triparty banking agents and crypto-native custodian Ceffu, which further simplifies compliance and operational procedures .

Expanding to BNB Chain—a blockchain known for its scalability and low fees—boosts BUIDL’s compatibility with decentralized finance (DeFi) platforms. Sarah Song, BNB Chain’s Head of Business Development, remarked that the network’s architecture "makes possible entirely new on-chain investment strategies"

. BUIDL’s debut on BNB Chain follows its existing support on , , and other prominent blockchains, reflecting the growing momentum of tokenized real-world assets (RWA) in both institutional and DeFi sectors .

Robbie Mitchnick, BlackRock’s global head of digital assets, described this achievement as a link between conventional finance and blockchain, noting that BUIDL’s use as collateral "introduces core elements of traditional finance into the blockchain space"

. Launched in March 2024, the fund provides daily dividend distributions and round-the-clock peer-to-peer transfers, appealing to qualified investors who value liquidity and returns . With an annual yield near 3.7%, BUIDL rivals stablecoins while offering the added security of U.S. Treasury backing .

This collaboration also marks a strategic partnership between Binance and BlackRock, two major players adapting to shifting regulatory requirements. Carlos Domingo, Securitize’s CEO, commented that this step "opens up new types of utility that were previously inaccessible," positioning tokenized RWAs as programmable financial tools

. At the same time, BNB Chain’s expanding ecosystem—supported by platforms such as and integrations with Binance Wallet—strengthens its role as a leading center for RWA innovation .

As tokenized Treasuries and other RWAs are increasingly used as collateral in trading and DeFi, the partnership among Binance, BlackRock, and BNB Chain demonstrates the evolution of blockchain-based financial systems. With institutions seeking more efficient capital solutions and regulators focusing on digital asset custody, BUIDL’s growth signals a broader movement toward hybrid models that combine the security of traditional assets with the flexibility of blockchain technology

.