Asset management giant BlackRock is reportedly in talks with a number of crypto exchange platforms to use its proprietary token BUIDL as collateral for derivative contracts.
According to a new report from Bloomberg, the world's largest asset manager uses BUIDL, the crypto asset associated with its tokenized mutual fund, as collateral for derivative contract transactions, according to anonymous people familiar with the matter. He said he is considering the idea of doing so.
Founded in March of this year, BUIDL stands for BlackRock USD Institutional Digital Liquidity Fund and aims to offer stable value of $1 per token built on the Ethereum (ETH) blockchain to high-quality traders. It is a designed tokenized money market fund. Harvest.
According to Bloomberg, the crypto exchanges BlackRock is negotiating with include Binance, the world's largest crypto exchange by trading volume, as well as OKX and Deribit.
It was previously reported that the fund invests in cash, U.S. Treasuries, and repurchase contracts, with dividends sent directly to investors' wallets in new tokens every month.
As BlackRock's head of digital assets, Robert Mitchnick, stated in a press release issued by BlackRock's intermediary partner Securitize:
“[BUIDL] This is the latest advancement in our digital asset strategy. We focus on developing solutions in the field of digital assets that help our clients solve real problems. ”
In April, stablecoin issuer Circle launched a new smart contract feature that allows BUIDL holders to convert their tokens to USDC. At the time, Circle CEO Jeremy Allaire said the new features “will allow investors to quickly transition away from tokenized assets, reducing costs and eliminating friction.”
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