The leading tokenized U.S. Treasury fund, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), is now recognized as collateral on both Crypto.com and Deribit, according to issuer Securitize in a press release issued on Wednesday.

• This allows institutional traders to use BUIDL tokens as margin for leveraged trades on the mentioned platforms while also earning yield on the underlying tokens.
• The tokenized Treasury sector has seen an impressive growth rate of nearly 400% over the past year, with BUIDL being the largest fund, managing assets worth $2.9 billion.

BUIDL’s recognition on these exchanges is set to enhance its usage among institutional traders, allowing less idle cash and more yield opportunities through the blockchain ecosystem. According to Carlos Domingo, CEO of Securitize,

“Tokenized Treasuries are being actively used to improve capital efficiency and risk management across some of the industry’s most sophisticated trading venues, while still offering yield.”
(Translation: Tokenized Treasuries are actively utilized to enhance capital efficiency and risk management within some of the industry’s leading trading platforms while still providing yield.)

As a result, the tokenized Treasury market has expanded significantly, surpassing $7 billion in market capitalization.