If BlackRock achieves its goal, BUIDL would be great competition for USDT and USDC.
This fact would be a milestone in the integration of cryptocurrencies and traditional finance.
BlackRock, the largest financial asset manager in the world, is taking the corresponding steps so that its BUIDL fund (which is tokenized on the Ethereum network) can be used as collateral in bitcoin (BTC) and cryptocurrency exchanges.
Among the exchanges that BUIDL would reach, according to “people familiar with the matter” who spoke with Bloomberg, are BinanceOKX and Deribit.
BlackRock is conducting the negotiations jointly with its brokerage partner, Securitize. If these efforts come to fruition, BUIDL could be used as collateral for bitcoin and cryptocurrency derivatives trades.
According to Bloomberg specialists Anna Irrera and Olga Kharif, “if BUIDL were accepted directly as collateral on platforms such as Deribit and Binance, the potential market for BlackRock would be greatly expanded.”
Let us remember that, as CriptoNoticias has explained, BUIDL has similarities with a stablecoin. This token can be bought and sold for $1. And its holders (who must be accredited investors) receive the interest in their wallets for ‘holding’ it.
Therefore Irrera and Kharif they explain that “if successful, BlackRock’s initiative could represent a new challenge for Tether and Circle Internet Financial Ltd., whose stablecoins [USDT y USDC, respectivamente] “They are often used as collateral in operations with cryptocurrency derivatives.”
BlackRock is the largest financial asset manager in the world, with more than 9.4 trillion dollars under his administrationmaking it one of the most influential institutions in global markets. Founded in 1988 by Larry Fink, BlackRock has consolidated its position through a diversified offering that includes mutual funds, ETFs, and customized financial solutions for governments, central banks and large institutions.
One of BlackRock’s greatest contributions to the financial system is its Aladdin technology platform, which uses advanced data analytics and algorithms to manage risk and make better investment decisions. This system is used by some of the world’s leading financial institutions, highlighting BlackRock’s ability to anticipate and react to changes in the markets.
Additionally, BlackRock has shown increasing interest in the cryptocurrency industry. At the moment, BlackRock manages ETFs for both bitcoin and ether (ETH), a cryptocurrency on the Ethereum network.