A naukri.com initiative
Intelalley
2d
315
Image Credit: Intelalley
BlackRock Tokenized Fund Used as Collateral in Derivatives Trade
- QCP has announced the first derivatives trade using a BlackRock tokenized fund as collateral, leading the Singapore-based digital asset market maker to describe the deal as “groundbreaking”. BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) was launched on the Ethereum blockchain in 2024 and invests in cash, US Treasury bills, and repos. Tokenized treasuries are the next chapter in on-chain financial innovation, enabling clients to access enhanced yield strategies. Stablecoins are typically used to transfer value and liquidity in digital finance, but tokenized treasuries could provide investors with both yield and active contributors to portfolio performance.
- QCP is investigating how BUIDL can be further transformed into a fixed yield instrument through interest rate swaps.
- Galaxy has predicted that the dominance of Tether’s stablecoin, USDT, will drop below 50% as it is challenged by yielding alternatives including BUIDL.
- Last November, the CFTC’s global markets advisory committee recommended that the use of non-cash collateral should be expanded through the use of distributed ledger technology.
- DTCC president Frank La Salla has said that in 2025 technologies such as blockchain and the cloud will play a crucial role in the buildout and interconnectedness of the digital financial ecosystem.
- DTCC’s sandbox, the DTCC Digital Launchpad, was launched in 2024 to enable the scalable adoption of digital assets.
- Nadine Chakar, the global head of DTCC Digital Assets, has said in her predictions for 2025 the merits of blockchain technology have been proven and it is time to put real applications on the ledger using tokenization.
- BUIDL returns a native yield of 4.25%. Collateralizing six-month bitcoin basis (long spot, short 27JUN25 futures) with stablecoins trading per annum at 11.95% increased yield to 15.03%.
- QCP said that as tokenized treasuries like BUIDL continue to gain traction, the digital asset ecosystem stands on the brink of a transformative era.
- Securitize said BUIDL’s utility as collateral introduces a paradigm shift. Trading desks can leverage tokenized treasuries to potentially access better returns while maintaining operational efficiency.
Read Full Article
18 Likes
For uninterrupted reading, download the app