BlackRock sees tokenized money market funds serving as collateral for trades in traditional financial markets. The firm already has a crypto-market example in its BUIDL fund, but no traditional clearinghouse deal has been identified.
According to an October 19 Bloomberg report, Dan Maley, BlackRock's head of cash management for Asia Pacific, said the firm's tokenized funds are already used as collateral in digital-asset markets. Extending that into conventional markets is more complicated, though investors could transfer fund holdings without first redeeming them for cash.
BUIDL already backs trades on Binance
BlackRock's USD Institutional Digital Liquidity Fund, known as BUIDL, launched in 2024 and uses Securitize's infrastructure to issue blockchain-based fund shares. In November 2025, Securitize announced that Binance would accept BUIDL as off-exchange collateral for eligible institutional traders.
The arrangement let participants support trading with qualifying fund holdings while keeping exposure to the underlying short-term Treasury investments. However, eligibility depends on the exchange, custody service, client classification and product restrictions, so not every holder can pledge shares against any position.
A USD 311 billion European rollout
Separately, BlackRock created tokenized share classes for selected Institutional Cash Series money market funds on JPMorgan's Kinexys platform. In its August 4 announcement, the firm confirmed that the rollout covers fund ranges with a combined USD 311 billion in assets under management.
That figure describes the broader fund platform, crypto.news noted, and does not show that USD 311 billion of shares had been minted on Ethereum. The official shareholder register stays with traditional transfer-agent infrastructure, and BlackRock named digital collateral among the potential uses.
Ondo also introduced three portfolios built on BlackRock investment strategies on September 24, for eligible investors outside the United States.
Custody and clearing rules still decide adoption
Banks and clearing organizations typically establish their own eligibility standards, valuation methods and custody arrangements for collateral. A token may allow an eligible holder to transfer an asset at any hour, but that does not automatically establish its treatment within a conventional settlement system.
The October 19 Bloomberg report did not identify a completed agreement with a traditional clearinghouse. It also did not say which BlackRock fund would be accepted next.
Source: crypto.news
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