Additionally, the asset manager has invested in US Bitcoin mining companies, such as Marathon Digital and Riot Blockchain.
This potential move comes as BlackRock continues to solidify its position in the crypto space, seeing as it currently has net assets of $25.79 billion for its Bitcoin ETF, the most among all issuers.
BlackRock, the world’s biggest asset manager, is reportedly in talks with top cryptocurrency exchanges, such as Binance, OKX, and Deribit, about using its BUIDL token as collateral on the derivatives market. If successful, this move could challenge the dominance of USDT and USDC, the most commonly used stablecoins in the crypto derivatives market.
As part of its efforts to gain a stronger hold on the crypto market, BlackRock already holds a significant amount of bitcoins through its Spot Bitcoin ETF, and has a stake in the Ethereum ecosystem through its Spot Ethereum ETF. Furthermore, the asset manager recently scooped 5,805 BTC in just 24 hours with its IBIT Bitcoin ETF, and Bloomberg analyst Eric Balchunas predicts that BlackRock will become the largest Bitcoin holder by next year.
As institutional investors are currently the primary users of the BUIDL token, having it on platforms like the world’s largest crypto exchange, Binance, is expected to expand its adoption.
