BlackRock’s tokenized treasury fund, called BUIDL, has taken a major step forward by becoming accessible through Binance, the largest crypto exchange in the world. On November 14, 2025, Binance announced that its VIP and institutional clients can now use BUIDL as off-exchange collateral when trading. This means big investors can keep their BUIDL tokens with a trusted third-party custodian and still use them to support their trades on Binance, making their money work more efficiently.
As part of this update, a new BUIDL asset class will also launch on the BNB Chain, giving institutional users more ways to use and manage the token. However, this access is strictly limited to institutional clients. Regular Binance users cannot buy or use BUIDL directly on the exchange. The process is carefully controlled and requires third-party custody for security.
BlackRock’s BUIDL, the world’s largest tokenized RWA, is now accepted as off-exchange collateral for trading on #Binance
This milestone reflects our dedication to enabling institutions to access digital assets with control, yield, security, and capital efficiency.
— Binance (@binance) November 14, 2025
If institutional users want to convert their BUIDL into USDC, they can do so through Circle, the company that issues USDC. Circle handles the redemption through a separate smart contract, not through Binance’s main platform. This redemption system was set up in April 2024 to give BUIDL holders 24/7 liquidity. Overall, the integration allows big investors to hold BUIDL safely while using it as collateral for trading on Binance, helping them manage their capital more efficiently.
Robbie Mitchnick, Global Head of Digital Assets at Blackrock, emphasized the structural shift underway:
By enabling BUIDL to operate as collateral across leading digital market infrastructure, we’re helping bring foundational elements of traditional finance into the on-chain finance arena.
Binance Banking Triparty is a system created by Binance to help large, professional investors manage risk when trading crypto. It works by letting institutions keep their assets such as tokenized fund shares, cash, or U.S. Treasury bills safe with approved banking partners. Even though these assets stay in the bank, Binance still gives the investor trading credit, allowing them to trade without moving the assets onto the exchange.
This setup gives institutions more choices when dealing with tokenized real-world assets and adds stronger checks, controls, and safety measures. It also helps grow new settlement methods that follow financial rules and regulations. As tokenization becomes a normal part of traditional finance, systems like Binance Banking Triparty show how regulated assets, blockchain technology, and trading platforms are coming together to build a reliable and scalable ecosystem for institutions.
BlackRock’s BUIDL going live on Binance marks a major step toward bringing traditional finance into the blockchain world. By allowing institutions to use tokenized Treasury assets safely and efficiently, both companies are helping shape a future where real-world financial products move seamlessly across global crypto markets. If this momentum continues, tokenization could quickly become one of the most important bridges between traditional finance and on-chain innovation.
As tokenized finance grows rapidly, do you think more traditional financial products will soon move fully on-chain?
FAQs
1. What is BlackRock’s BUIDL?
BUIDL is BlackRock’s tokenized U.S. Treasury fund that allows investors to earn yield using blockchain technology.
2. Who can access BUIDL on Binance?
Only Binance’s VIP and institutional clients can use BUIDL as off-exchange collateral. Retail users cannot buy or trade it directly on the exchange.
3. How do institutional users redeem BUIDL for USDC?
Redemption is handled by Circle through a separate smart contract that provides 24/7 liquidity, not through Binance’s main platform.
4. What is Binance Banking Triparty?
It’s a system that lets institutions keep their assets—like cash, tokenized funds, or Treasury bills—safe with supervised banking partners while still receiving trading credit on Binance.
5. Why is this integration important for tokenization?
It shows how regulated financial assets, blockchain networks, and crypto trading platforms are merging to create a scalable, institution-friendly ecosystem.
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About the Author: John Brok
