BlackRock’s BUIDL token has the potential to disrupt Tether’s dominance.

Talks with exchanges have signaled the potential adoption of BUIDL as collateral.

BUIDL’s entry have the potential to reshape the derivatives landscape.

BlackRock, the world’s largest asset manager, is pushing deeper into the crypto space, reportedly in talks with major exchanges to use its BUIDL token as collateral for derivatives trading. This bold move could shake up the market as BlackRock looks to rival stablecoin giant Tether in the rapidly growing crypto derivatives sector.

Insiders suggest these discussions, though private, could bring significant shifts. Centralized exchanges like Binance, OKX, and Deribit handle massive volumes of derivatives trades, and introducing BUIDL as collateral could unlock a game-changing market for BlackRock. This step signals the company’s ambition to establish a powerful foothold in the digital assets arena.

BlackRock’s Collateral Strategy

BlackRock’s BUIDL token, officially called the USD Institutional Digital Liquidity Fund, has gained traction in the Real-World Asset (RWA) token market this year.  Sponsored

The asset management giant is reportedly working to have the fund accepted as collateral in derivatives trading, boosting its influence in crypto finance. Securitize, a brokerage partner of BlackRock, expressed excitement about BUIDL’s potential.

“The BUIDL ecosystem keeps growing, and we see significant potential in traders using the fund as collateral.” a representative stated.

Meanwhile, Deribit’s CEO, Luuk Strijers, confirmed that the exchange is reviewing several tokens, including BUIDL, keeping the door open for future integration.

Competing with Tether: A New Revenue Stream

This is more than just a market move—it’s a direct challenge to Tether’s dominance. BUIDL isn’t a traditional stablecoin, but it has striking similarities, including its peg to the U.S. dollar and investments in Treasury bonds. 

However, BUIDL offers something extra—interest payments—which could make it more appealing than traditional stablecoins like Tether. With centralized exchanges processing immense trading volumes, the fund could unlock billions in revenue for BlackRock if accepted as collateral. 

Armed with its expertise in traditional finance, BlackRock is positioning itself to carve out a significant share of the lucrative crypto derivatives market, potentially reshaping the landscape for institutional investors.

On the Flipside

BUIDL’s adoption as collateral is still uncertain, as major exchanges have yet to finalize agreements.

Competing with Tether will be difficult, given Tether’s established market presence.

BUIDL offers interest payments, but this could introduce new risks for traders.

Why This Matters

BlackRock’s strategy to push BUIDL as collateral in crypto derivatives could disrupt Tether’s dominance and unlock massive new revenue streams. If adopted, BUIDL could redefine how exchanges handle collateral, giving BlackRock a powerful foothold in the crypto market while offering traders an alternative to stablecoins like Tether.

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