Forbes on BlackRock Tokenized MMF
Forbes writes "Major Crypto Exchanges To Accept BlackRock’s $2.9 Billion Tokenized Money Market Fund As Collateral." The piece says, "For years, crypto traders posting collateral on exchanges have faced a tough tradeoff: use stablecoins like USDC or tether, which are, well, stable but pay no yield, or roll the dice with volatile assets like bitcoin and ether, risking a double hit when markets turn south: losses on your trade and on the collateral backing it." They tell us, "BlackRock's BUIDL, the asset manager's first money market fund issued on a public blockchain in partnership with tokenization specialist Securitize, will become accepted as collateral on Crypto.com and Deribit, two of the industry's largest exchanges. That means institutional and experienced traders of these platforms can now post a yield-bearing, blockchain-native version of U.S. Treasurys to back trades. Because BUIDL is both less volatile and income-generating (it currently pays around 4.5% annually), exchanges can offer lower minimum collateral requirements, freeing up more capital for traders to deploy elsewhere." The brief adds, "Since its launch in March 2024, BUIDL has grown to $2.9 billion in assets. Its largest holders include Ondo Finance, which tokenizes real-world assets, and Ethena Labs, the creator of the USDe stablecoin."
