BlackRock Builds Crypto Collateral Boom
By letting its Buidl platform be used as collateral for crypto loans and trading, BlackRock has quietly changed the way global investors can use crypto. This change makes a tokenized treasury offering into something much more powerful: a bridge between traditional finance and decentralized markets for institutions. The timing is perfect because the demand for reliable collateral in cryptocurrency is still growing in 2025.
BlackRock opens up institutional opportunities beyond its usual ETF offerings by letting Buidl token holders use these assets as collateral on platforms like Genesis and Aave. The value of short-term treasuries held by BlackRock is linked to the value of the Buidl token. The token’s short duration means it stays liquid while still earning yield, which makes it a good choice for collateral. Genesis, one of the biggest crypto lenders in the world, already takes Buidl tokens as collateral. Later this year, Aave integration is expected to give people access to decentralized finance.
People who work in the industry say this means a big change. An institutional client with cash in BlackRock treasury ETFs can now take on leveraged positions in crypto markets without having to sell their current holdings. This could lead to both short-term trading and long-term investment strategies at institutions. Some people think that using Buidl as collateral could lead to a bigger ecosystem that includes derivatives and DeFi products that are built around tokenized assets.
Buidl meets DeFi as yield and utility come together
BlackRock is making Buidl more than just a way to make money. The platform’s usefulness is growing quickly as it connects to more and more lending systems. Users of centralized platforms like Genesis can choose from regulated collateral options. Once you sign up for Aave, you can use Buidl tokens in lending pools that don’t require permission. This lets you borrow, lend, or even trade other assets while still getting short-term yield.
Michael Sonnenshein, COO of Securitize, says in the press release, “This is a major turning point.” He stressed that tokenized securities like BUIDL are becoming viable alternatives to stablecoins and are now seen as “programmable productive capital”, not just a place to park money, but assets that work and make money.
This shows that tokenized assets are becoming more popular in real markets. Tokenized treasuries mix the stable yields of traditional finance with the programmable features of blockchain. This could help BlackRock get a bigger share of the crypto market, especially with institutions that need reliable structures and compliance backbones.