BlackRock Expands Its Crypto Dominance With BUIDL Tokenized Product, Targets Global Crypto Exchanges

BlackRock is planning new use cases for its BUIDL product and is in ongoing discussions with some global crypto exchanges. According to people familiar with the matter, Binance, OKX, and Deribit are some of the crypto exchanges involved.

BlackRock is reportedly planning to expand the use cases for its BUIDL product and is currently in discussions with several major global crypto exchanges.

According to sources close to the matter, Binance, OKX, and Deribit are among the crypto exchanges that have been approached by BlackRock.

These discussions are said to be centered around enabling the broader use of the BUIIDL token as collateral for crypto derivatives trades.

This news comes as Wall Street investors are increasingly seeking strategies to enter the digital asset ecosystem.

BlackRock’s BUIDL Dominating Rivals

With the recent launch of BUIDL, BlackRock’s first tokenized offering, it has quickly come to dominate the ecosystem.

Within six weeks of its launch, the offering outperformed its peers. By May, it had achieved a market capitalization of $375 million. This surpassed the market cap of the year-old Franklin OnChain U.S. Government Money Fund (BENJI), which was pegged at $368 million at the time.

The BUIDL fund is designed for qualified institutional investors with a minimum of $5 million in available capital. To date, FalconX and Hidden Road, two of the largest crypto prime brokers, have authorized the use of BUIDL as collateral among their clients.

Recently, Komainu also noted that its clients who are eligible to invest in BUIDL can trade through Hidden Road using the token as collateral.

This tokenized offering has seen some major adoption recently, including a $50 million transfer from Ondo Finance (EOUSG), making it the largest Treasury fund. At another point, Ethena announced the launch of a new stablecoin backed by the BlackRock BUIDL fund asset.

Compared to its peers, such as FOBXX, OUSG, USDY, and USTB, BUIIDL has attracted more institutional funds.

BlackRock’s Foray into Crypto – Spot Bitcoin ETF

Overall, BlackRock has made significant strides in the crypto industry in a short span of time.

Its crypto products, which are barely a year old, are topping the charts, aside from its BUIDL tokenized product. The BlackRock iShares Bitcoin Trust (IBIT), which received SEC approval for trading in January, has led its rivals in terms of inflows.

Weeks ago, Bitcoin ETFs saw a net inflow of $235.19 million, which reflects growing investor interest in the market.

Of this amount, BlackRock’s IBIT alone raked in $97.88 million. On October 16, spot BTC ETFs saw a net inflow of $458 million, with IBIT leading the way with $393 million. This was around the time when Bitcoin ETFs surpassed $20 billion in total net flows for the first time.

Crucial milestones are also being hit by the BlackRock iShares Ethereum Trust (ETHA), which is not relegated to the background.

Are Exchanges Facing a Threat?

The role of crypto firms may be threatened by the rapid entry and aggressive tactics of institutional investors. However, careful integration of both sectors can help close the gap between TradFi and DeFi.

For a long time, crypto leaders have sought strategies to close the gap between the two key niches. The Coin Republic recently covered the roles of TradFi and DeFi in the economy. While there are some distinctions, their fusion creates a level of balance.

The entry of established firms like BlackRock into the sector has lent it credibility. Rather than feeling threatened, exchanges may innovate better to compete with cash-heavy Wall Street rivals.