BlackRock’s Tokenized Treasury Fund Gains New Utility on Crypto Platforms

Tokenized real-world assets, including U.S. Treasuries, are becoming a popular choice for collateral on crypto trading platforms.

Securitize announced Wednesday that the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) — the largest tokenized U.S. Treasury fund — is now accepted as collateral on two major crypto venues: Crypto.com and Deribit.

This move allows institutional traders to deploy BUIDL tokens as margin for leveraged trades on these exchanges while still earning yield from the underlying assets.

The market for tokenized Treasuries has seen explosive growth, surging roughly 400% over the past year to surpass $7 billion in market capitalization, according to data from rwa.xyz. These digital tokens function similarly to money market funds, enabling investors to earn returns on idle cash without moving funds off-chain. Increasingly, they’re also being used as collateral for crypto trading.

With $2.9 billion in assets, BUIDL stands as the largest tokenized Treasury product, backed by a short-term, yield-generating portfolio of cash and U.S. Treasuries.

“Tokenized Treasuries are actively being leveraged to enhance capital efficiency and manage risk across some of the industry’s most sophisticated trading platforms, while still delivering yield,” said Carlos Domingo, CEO of Securitize. “The BUIDL fund is transforming from a yield-focused token into a fundamental piece of crypto market infrastructure.”