The news around how Binance adds BUIDL as collateral has become an important development for institutions looking for more control over how they deploy capital. The exchange confirmed that BlackRock’s tokenized fund can now be pledged as off-exchange collateral, allowing clients to trade while keeping custody with regulated partners. At the same time, BUIDL is launching a new share class on BNB Chain, which expands where the asset can be used and how it interacts with onchain applications. The update gives a clearer view of how tokenized real-world assets are becoming part of practical trading workflows.

Binance Accepts BUIDL as Off-Exchange Collateral

Binance stated that institutional and advanced users can now use BlackRock’s USD Institutional Digital Liquidity Fund, known as BUIDL, as off-exchange collateral. The fund is tokenized by Securitize and offers yield on U.S. dollar assets while allowing investors to keep their tokens in third-party custody instead of storing them on the exchange.

The setup is supported through Binance Banking Triparty and the exchange’s crypto-native custody partner, Ceffu. The idea is to mirror traditional collateral arrangements where assets such as Treasury bills and cash remain with regulated banking partners while clients receive credit to trade. This gives institutions a more familiar level of oversight and reduces their direct counterparty exposure.

Catherine Chen from Binance explained that clients have been requesting more interest-bearing collateral options, and BUIDL fits the profile by combining regulated yield with flexible custody.

BUIDL Expands to BNB Chain

Alongside the collateral integration, Binance confirmed that BUIDL will launch a new share class on BNB Chain. The network is known for low transaction costs and high throughput, which makes it suitable for onchain financial applications. With this launch, BUIDL becomes more accessible to developers and investors who prefer interacting with assets on BNB Chain.

BNB Chain’s team said BUIDL brings more programmable financial instruments into its ecosystem. For BlackRock, the move continues its work toward connecting traditional financial structures with blockchain-based systems. Robbie Mitchnick from BlackRock said the goal is to support the transition of established financial tools into digital market environments.

BUIDL already exists across several other networks including Ethereum, Optimism, Polygon, Arbitrum, Solana, Avalanche and Aptos. Adding BNB Chain expands that reach and increases interoperability.

Related read: Binance Introduces Crypto-as-a-Service for Institutions

Growing Presence of Tokenized Treasuries

The integration comes at a time when tokenized U.S. Treasuries have grown into one of the largest categories of real-world assets on public blockchains. Data from the RWA market shows a combined value of more than eight billion dollars, led by BlackRock’s BUIDL, Circle’s USYC and Franklin Templeton’s BENJI.

The shift reflects how tokenized funds have evolved. What began as a way to earn yield onchain has moved into trading infrastructure, giving institutions new collateral options beyond cash or stablecoins. By accepting BUIDL, Binance contributes to a broader trend where regulated, yield-bearing assets are used directly to support trading positions.

BUIDL itself launched in 2024 as BlackRock’s first tokenized fund issued on a public blockchain. It offers daily yield distribution, flexible custody and fully transferable tokens.

Supporting Binance’s Off-Exchange Settlement Framework

Binance highlighted that BUIDL strengthens its off-exchange settlement framework. Through the Banking Triparty model, institutions can place collateral with a regulated banking partner and still access Binance liquidity without moving assets onto the exchange. This structure aligns with internal governance and compliance requirements many institutions already follow.

With BUIDL added to the collateral list, institutional traders gain another regulated, yield-bearing instrument that can support their strategies while maintaining custody in environments they trust.

Also read: Binance Becomes a Validator on Sei Network

Closing Thoughts

The confirmation that Binance adds BUIDL as collateral marks another steady step toward wider adoption of tokenized assets in institutional markets. By combining off-exchange settlement, a regulated yield-bearing structure and the expansion of BUIDL onto BNB Chain, Binance is offering institutions more options and more flexibility. The approach helps bring established financial tools into onchain environments in a practical and controlled way.