BlackRock’s $2.5B BUIDL Fund Goes Live as Collateral on OKX

BlackRock’s $2.5B tokenized fund BUIDL is now live on OKX as yield-bearing collateral, backed by Standard Chartered custody.

BlackRock has taken another step into digital asset markets. 

The asset management giant’s tokenized money market fund, BUIDL, is now live on crypto exchange OKX as yield-bearing collateral. 

Standard Chartered holds the underlying assets in regulated custody. Moreover, the fund is valued at approximately $2.5 billion and invests in U.S. Treasuries and repurchase agreements. 

Access is currently limited to qualified investors in the Middle East.

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BlackRock BUIDL Enters OKX’s Institutional Trading Framework

OKX Institutional announced the development on X. 

According to the exchange, BUIDL can now serve as on-exchange margin and off-exchange collateral within one framework. Institutions no longer have to choose between keeping capital in liquid assets or deploying it in trading markets.

On-exchange, investors can deposit BUIDL and use it across trading activities on OKX. Yield continues to accrue while the fund serves as active collateral. 

Off-exchange, assets remain in custody with Standard Chartered, a Tier 1 Global Systemically Important Bank (G-SIB). Moreover, OKX described it as the first-ever G-SIB-backed off-exchange tokenized collateral framework.

The three institutions each bring distinct capabilities to the setup. 

BlackRock leads in tokenized Treasury funds. Standard Chartered provides regulated custody. OKX contributes institutional-grade trading and margining infrastructure.

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Tokenized Treasury Fund Improves Capital Efficiency for Institutions

The core appeal of this framework is capital efficiency. Institutions can keep assets invested in short-term U.S. Treasury exposure while simultaneously using them as collateral. 

Yield benchmarked against the U.S. Federal Funds rate continues to accrue throughout.

OKX noted that balance sheets become more productive under this model. Margin is no longer idle. Capital can move more dynamically across digital markets without sacrificing safety or yield.

Standard Chartered’s custody role adds a layer of institutional familiarity. Assets are safeguarded within a regulated framework that aligns with traditional financial standards. 

Trading activity on OKX remains real-time and fully operational throughout.

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Real-World Asset Tokenization Moves Into Core Market Infrastructure

OKX framed this collaboration as part of a broader shift in how tokenized real-world assets (RWAs) function. 

Moreover, according to the exchange, tokenization introduces transparency, programmability, and flexibility into collateral management. These are qualities that traditional systems often lack.

Besides, the exchange stated that the digital asset industry began with price discovery. Moreover, the next phase, as OKX described it, involves embedding tokenization into global market infrastructure. 

BUIDL is issued on public blockchain rails, making it programmable and transferable in ways that traditional funds are not.

Additionally, OKX stated that the framework moves tokenized RWAs beyond experimentation. They now sit inside real institutional workflows for trading, margining, and liquidity management. 

The collaboration signals continued convergence between Wall Street institutions and crypto market infrastructure.

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