BlackRock, the world’s biggest asset manager, is making a big push into the crypto world. They’re already big players with their Bitcoin and Ethereum ETFs, but now they’re aiming for a bigger slice of the pie.
BUIDL: A Stablecoin with a Purpose
BlackRock has a token called BUIDL (BlackRock USD Institutional Digital Liquidity Fund). It’s like a stablecoin, pegged to the US dollar, and it’s designed for institutional investors. Think of it as a way for big players to earn interest on their US dollar holdings.
BUIDL has been doing pretty well since it launched in March, with over $550 million in assets under management. Now, BlackRock wants to take it to the next level.
BUIDL in the Derivatives Market
BlackRock is talking to major crypto exchanges like Binance, OKX, and Deribit about using BUIDL as collateral for derivatives trading. This would be a big deal because derivatives make up a huge chunk of the crypto market.
Think of it like this: when you trade derivatives, you need to put up some money as a guarantee. BlackRock wants BUIDL to be that guarantee.
Taking on USDT
This move puts BlackRock in direct competition with Tether’s USDT, which is currently the most popular collateral asset in the derivatives market. USDT is a huge stablecoin, worth over $120 billion.
If BlackRock can get BUIDL accepted as collateral, it could be a game-changer. They could potentially become a major player in the derivatives market, which would give them even more influence in the crypto world.
BlackRock’s Ambitions
BlackRock is already a big name in crypto with its ETFs. But if they can get BUIDL into the derivatives market, they’ll be even more powerful. This is a big move that could have a major impact on the future of crypto.
