BlackRock’s $2.5B Tokenized Fund Powers Binance

BlackRock’s $2.5 billion tokenized fund has just taken a major step deeper into the heart of crypto markets. The BlackRock USD Institutional Digital Liquidity Fund, better known by its ticker BUIDL, is now accepted as off-exchange collateral on Binance and is expanding to the BNB Chain through a new share class.

In practice, this means institutional investors can hold exposure to tokenized U.S. Treasuries via BUIDL, park those tokens with regulated custodians and still use them as margin for trading on Binance. At the same time, the fund’s expansion to BNB Chain brings a flagship real-world asset (RWA) product directly into one of the most active smart contract ecosystems, opening doors for integration across DeFi protocols, custodians and on-chain asset managers.

This development is about more than one fund or one exchange. It is a glimpse of how traditional finance and on-chain finance can merge: highly regulated, yield-bearing instruments moving natively across blockchains and being used as programmable collateral. In this article, we will explore what BlackRock’s BUIDL fund is, how it became collateral on Binance, why BNB Chain matters, and what this means for RWA tokenization, institutional traders and the broader crypto market.

What Is BlackRock’s $2.5B Tokenized BUIDL Fund?

BlackRock’s BUIDL fund is formally called the BlackRock USD Institutional Digital Liquidity Fund. It is a tokenized money-market style fund that holds cash, U.S. Treasury bills and repurchase agreements, and aims to keep its token price close to one U.S. dollar while paying yield from the underlying assets.

Instead of investors buying traditional fund shares through legacy channels, BUIDL issues on-chain tokens that represent claims on the fund. These tokens live on public blockchains and can be held in digital wallets, transferred between whitelisted addresses and integrated into crypto infrastructure. The fund is tokenized by Securitize, a regulated transfer agent and tokenization specialist that handles investor onboarding, KYC and compliance.

Since its launch in 2024, BUIDL has grown rapidly and now manages around $2.5 billion in assets, making it one of the largest, if not the largest, tokenized real-world assets in existence.  Its presence across multiple chains, including Ethereum and various layer-2 networks, reflects BlackRock’s broader multi-chain strategy for digital assets, designed to meet investors where liquidity and activity are strongest.

By wrapping a familiar, low-risk Treasury exposure into a programmable token, BUIDL offers institutions a combination they previously could not get in one place: regulated structure, stable value, on-chain settlement and continuous, blockchain-native transferability.

Why Off-Exchange Collateral Is a Big Deal for Institutions

For many institutions, the bottleneck in crypto is not access to exchanges but comfort with risk, custody and compliance. The integration of BUIDL as off-exchange collateral directly addresses these concerns.

Hold a yield-bearing, dollar-denominated asset rather than idle stablecoins.
Post that same asset as collateral for derivatives or spot trading on Binance.
Retain confidence that assets stay with vetted custodians rather than being swept into exchange wallets.

This is a fundamentally different model from the early days of crypto, when trading usually required sending funds to an exchange and trusting its internal controls. Instead, we are moving into an era where exchanges plug into a wider institutional settlement network, with collateral recognized through coordinated infrastructure rather than simple deposits.

Because BUIDL is a tokenized U.S. Treasury fund, it gives institutions both yield and stability. Compared with non-yielding stablecoins that typically represent bank deposits or money-market positions indirectly, the BUIDL token embeds a regulated fund structure directly into the on-chain asset.

The fact that Binance, one of the world’s largest exchanges by volume, is willing to treat this as pristine collateral sends a strong signal that tokenized RWAs are maturing into a core part of institutional crypto markets.

Expansion to BNB Chain: More Than Just Another Network

Alongside collateral status on Binance, BlackRock’s tokenized fund is expanding via a new share class that launches on BNB Chain, extending BUIDL’s presence to yet another major blockchain.

BNB Chain offers high throughput, low fees and an extensive ecosystem of DeFi protocols, exchanges, yield platforms and on-chain asset managers. By bringing BUIDL to BNB Chain, BlackRock and Securitize are effectively placing a regulated, institution-grade RWA in the middle of this ecosystem.

This expansion has several implications. It allows:

On-chain protocols to integrate BUIDL as a collateral asset or base layer for structured products.
Custodians to support transfers and settlement on BNB Chain alongside other networks.
Institutions that already operate on BNB Chain to gain access to tokenized Treasury yields without bridging to other ecosystems.

How Real-World Asset Tokenization Benefits from This Move

The combination of Binance collateral status and BNB Chain expansion turbocharges the narrative around real-world asset tokenization.

Until recently, many RWA projects struggled with two persistent problems: limited utility and limited scale. Assets were tokenized and could technically move on-chain, but they were not deeply integrated into trading venues, nor did they attract the full weight of institutional capital.

BlackRock’s BUIDL now addresses both issues. It has meaningful scale at roughly $2.5 billion AUM, and it is directly plugged into one of the top global exchanges as recognized collateral.

For RWA markets, this sets several important precedents. It proves that:

Institutional-grade RWAs can be used as active collateral, not just passive holdings.
Major exchanges are willing to integrate tokenized funds into their risk and margin systems.
Multi-chain deployments, such as expansion to BNB Chain, can extend utility beyond a single DeFi cluster.

These developments strengthen the case that on-chain finance is not separate from traditional capital markets but an extension of them. Tokenization becomes a way to deliver existing financial products in a more programmable, transparent and efficient form, rather than reinventing everything from scratch.

The Strategic Importance for Binance and BNB Chain

For Binance, integrating BlackRock’s tokenized fund as collateral enhances its position as a venue where traditional institutions and crypto-native traders meet. The exchange can now offer institutional clients a regulated, yield-bearing collateral option while maintaining its existing liquidity in spot and derivatives markets.

This creates a flywheel effect. As more institutions use BUIDL as collateral, Binance can deepen its off-exchange settlement network, build more relationships with custodians and increase trading volumes without necessarily increasing on-exchange asset balances.

For BNB Chain, hosting a share class of BlackRock’s fund is both symbolic and practical. Symbolically, it shows that a leading global asset manager views BNB Chain as a major hub worthy of direct integration.

This could support new strategies where DeFi platforms on BNB Chain accept BUIDL tokens as collateral for loans, use them as backing for synthetic assets or construct yield-enhancing products for qualified participants. Over time, this may pull more institutional liquidity into BNB Chain specifically, broadening the chain’s role beyond retail trading and speculative activity.

Opportunities and Benefits for Institutional Investors

For institutions, the integration of BlackRock’s $2.5B tokenized fund with Binance and BNB Chain presents several concrete opportunities.

First, they can consolidate Treasury exposure and trading collateral into a single product. Instead of managing a separate money-market fund position and a pile of stablecoins, institutions can hold BUIDL and use it for both yield and margining.

Second, they gain on-chain interoperability. Because BUIDL is a tokenized fund running across multiple chains, institutions can move their positions between different blockchain environments without fundamentally changing the underlying asset exposure. This can simplify operations for funds that trade on multiple venues or interact with different DeFi protocols.

Third, they benefit from improved transparency and settlement speed. On-chain records provide near-real-time visibility into positions and transfers, whereas traditional fund platforms often rely on end-of-day or T+1 reporting. For trading desks and risk teams, this on-chain clarity can be a substantial advantage.

What It Means for Retail Traders and the Wider Crypto Market

When institutional traders can post regulated RWA tokens as collateral and trade more efficiently, they are more likely to bring larger volumes onto exchanges. This can deepen order books, tighten spreads and increase liquidity in markets that retail traders participate in every day.

Moreover, the success of BUIDL on Binance and BNB Chain is likely to inspire competing products. Other asset managers, banks and tokenization platforms will want their own tokenized funds recognized as collateral and plugged into DeFi ecosystems. Over time, this could create an entire spectrum of on-chain Treasury products, corporate debt funds and even tokenized credit instruments that interact directly with major exchanges and blockchains.

For the broader crypto narrative, this integration helps shift the conversation from purely speculative tokens toward yield-bearing, institution-grade assets that exist natively on blockchains.

Key Risks and Challenges to Watch

Despite its promise, the integration of BlackRock’s tokenized fund with Binance and BNB Chain also raises important questions.

Regulatory clarity remains a major factor. Tokenized funds, even when built on top of familiar money-market structures, must navigate securities laws, custody rules and cross-border regulations. Any change in how regulators view on-chain RWAs, especially in large jurisdictions, could affect market structure or eligibility for certain investor types.

Operational risk is another concern. Multi-chain deployments and off-exchange collateral systems rely on a network of custodians, oracles, messaging protocols and smart contracts. Each component must work reliably and securely to avoid issues like mis-calculated collateral, delays in settlement or, in worst-case scenarios, smart contract exploits.

Finally, concentration risk cannot be ignored. If a large amount of collateral across multiple venues becomes anchored in a single tokenized fund, any disruption in that fund’s operations, pricing or regulatory status could ripple through multiple trading platforms at once.

These risks do not negate the benefits of RWA tokenization, but they do underscore the need for robust governance, continuous audits and transparent communication between issuers, exchanges, custodians and investors.

The Future of Tokenized Funds After the BUIDL–Binance Integration

Large asset managers are willing to put real scale behind tokenized products.
Major exchanges see tokenized Treasuries as credible, high-quality collateral.
Public blockchains like BNB Chain can host regulated instruments that plug into both DeFi and centralized venues.

Looking forward, we can expect more traditional funds to follow BUIDL’s playbook: tokenizing assets, deploying them on multiple chains, partnering with regulated tokenization platforms and integrating with exchange collateral systems. In time, the line between money-market funds, tokenized cash equivalents and stablecoins may blur, as all three categories converge on shared infrastructure and liquidity pools.

Conclusion

By combining the stability and regulation of a Treasury-backed liquidity fund with the programmability and composability of public blockchains, this move shows how real-world asset tokenization can unlock new forms of utility for institutional investors. Off-exchange collateral frameworks lower counterparty risk, multi-chain deployments increase flexibility and DeFi integrations on BNB Chain expand the universe of possible use cases.

For institutions, this offers a clearer path into on-chain markets with familiar risk profiles. For crypto, it validates the idea that blockchains can host institution-grade, yield-bearing assets at scale. And for the future of finance, it hints at a world where the distinction between “on-chain” and “off-chain” markets fades, replaced by a unified landscape of digitally native, tokenized capital.

FAQs

What exactly is BlackRock’s $2.5B tokenized fund BUIDL?

BlackRock’s BUIDL fund is a USD-denominated, tokenized liquidity fund that invests in cash, U.S. Treasury bills and repurchase agreements while aiming to maintain a stable value around one dollar per token.

How can institutions use BUIDL as collateral on Binance?

Institutions do not need to transfer their BUIDL tokens directly into Binance wallets. Instead, they can hold the tokenized fund with participating custodians and pledge it as off-exchange collateral.

Why is the expansion of BUIDL to BNB Chain important?

The launch of a new BUIDL share class on BNB Chain brings a large, regulated real-world asset directly into one of the busiest DeFi ecosystems. This allows protocols on BNB Chain to integrate BUIDL as collateral or a yield source, gives institutions more flexibility in how and where they hold their tokenized Treasury exposure, and strengthens BNB Chain’s position as a hub for on-chain RWA activity.

How is BUIDL different from a traditional stablecoin?

A typical stablecoin represents a claim on reserves that may consist of cash, Treasuries or other assets, but the structure and disclosures can vary widely. Investors buy fund shares represented as tokens, receive yield from the portfolio and benefit from the legal and operational framework of a traditional institutional fund, while still enjoying on-chain transferability.

What does this mean for the future of real-world asset tokenization?

BlackRock’s move signals that real-world asset tokenization is evolving from small pilots to large-scale, production-grade infrastructure. With a multi-billion-dollar fund like BUIDL accepted as collateral on Binance and live on BNB Chain, other asset managers are likely to accelerate their own tokenization strategies. Over time, investors may routinely hold tokenized Treasuries, bond funds and other RWAs in their wallets and use them as programmable collateral across both centralized exchanges and DeFi protocols, reshaping how global capital flows through financial markets.

See more;Bitcoin All-Time Highs Could Be Imminent in May 2025 — Here’s Why