Binance to Use BlackRock's Tokenized Fund ”BUIDL” as Collateral

On the 18th local time, Binance, the world's largest cryptocurrency exchange, announced that it would be launching a tokenized version of U.S. Treasury bonds provided by BlackRock, the largest asset management company in the United States.
The company announced that it will use the securities fund "BUIDL" as collateral. BUIDL is a tokenized fund based on BlackRock's public blockchain, which was launched in March last year.
It invests in real assets such as government bonds and repurchase agreements through the exchange of funds. As a money market fund (MMF) exclusively for institutions, it distributes profits to token holders.
Binance explained that this approval for collateral use will allow institutional investors to store BUIDL tokens in third-party custodians while securing liquidity on Binance.
In particular, Binance's "Banking Tri-Party" service adapts traditional financial collateral management methods to the on-chain environment.
Catherine Chen, head of Binance's Institutional Business Division, said, "Until now, institutional clients have been able to use collateral-based
"Integrating BUIDL's collateral system will help us meet this demand and enable institutions to scale operations while remaining compliant with regulations," he said.
We will provide support to them."