Why collateral Is Trending Today?

Binance, a leading cryptocurrency exchange, has integrated BlackRock's $2.5 billion BUIDL fund as collateral for off-exchange crypto trading, marking a significant step in institutional adoption. This move allows institutional traders to use BlackRock's tokenized U.S. Treasury yields as collateral for trading on Binance. The BUIDL fund, which focuses on real-world assets (RWAs), has expanded to the BNB Chain, potentially advancing the tokenization of RWAs and boosting accessibility. This collaboration between BlackRock and Binance could signal a shift in how institutional capital interacts with the crypto market, with some analysts suggesting it could be a "checkmate" move for institutional capital in the space.