BlackRock Sees Tokenized Funds as Collateral for Wall Street Trades
BlackRock sees room to expand tokenized fund collateral into traditional finance, where institutional acceptance and existing systems remain hurdles.
Key Notes
- BlackRock sees traditional finance as a larger opportunity for tokenized fund collateral.
- BUIDL’s off-exchange collateral arrangement with Binance was announced in November 2025.
- BlackRock’s European onchain share classes use Ethereum while the official shareholder register remains with the transfer agent.
BlackRock sees a larger role for tokenized investment funds as collateral in traditional finance, extending an application already operating in cryptocurrency markets.
Dan Maley, who oversees BlackRock’s Asia-Pacific cash business, described the opportunity in a Bloomberg interview published on October 19. Adoption would require institutions to accept the assets, connect existing infrastructure and resolve regulatory uncertainty.
The discussion concerns how fund holdings move and secure transactions. It is not an announcement that traditional clearinghouses now universally accept BlackRock’s tokenized shares.
BUIDL already has a collateral use case
A concrete example predates the latest comments. In November 2025, Securitize and Binance announced that the BlackRock USD Institutional Digital Liquidity Fund, or BUIDL, would be accepted as off-exchange trading collateral.
The arrangement allows eligible institutional and advanced traders to support exchange positions while maintaining exposure to tokenized Treasuries. Binance described integration with banking triparty partners and custody provider Ceffu, linking the investment holding to a trading account without requiring the collateral to sit on the exchange.
BUIDL launched in March 2024. Securitize’s announcement describes a product for qualified investors, with flexible custody and peer-to-peer transfers available around the clock. Those transfer capabilities do not mean every investor can redeem fund shares for cash at any hour, a distinction highlighted in Bloomberg’s report.
Existing funds gain blockchain functionality
BlackRock has also added tokenized share classes to established European money-market funds. Its August 4 announcement describes onchain access to selected Institutional Cash Series funds in euros, sterling and US dollars, using Kinexys by J.P. Morgan’s tokenization platform.
The tokens are minted on Ethereum and represent underlying fund shares. The official shareholder register remains within the transfer agent’s infrastructure. Approved investor wallets can transfer holdings, with digital collateral management among the stated uses.
The release cites a combined $311 billion in assets under management across the relevant fund platform. That figure describes the scale of the underlying fund business; it does not establish that $311 billion has moved into tokenized shares.
CoinScreamer’s coverage of S&P’s Canton swap shows a separate part of this infrastructure taking shape: a derivatives contract referencing a tokenized benchmark. In that transaction, connections to digital cash and collateral remained planned, illustrating the difference between recording a trade onchain and completing every supporting workflow there.
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