BlackRock’s BUIDL Fund Now Eligible as Collateral on M0

BUIDL, BlackRock’s tokenized U.S. Treasury fund, is now accepted as collateral for stablecoins issued on the M0 platform, the teams revealed on Thursday, Dec. 4.

The update gives M0 issuers access to the largest tokenized Treasury fund to back their stablecoins. BUIDL has over $2 billion in total assets, down roughly 30% over the past month, even as the fund’s price remained steady at $1. At the same time, the number of holders grew by more than 3%, according to RWAxyz.

The move highlights a broader push to make stablecoins more secure, give issuers more flexibility, and boost on-chain liquidity. This comes as the stablecoin sector has grown quickly, with its market capitalization rising to nearly $308 billion from $199 billion over the past year, according to DeFiLlama.

“Governance has voted to accept BUIDL… as eligible collateral for stablecoins built on M0,” M0’s team wrote in a post on X. “Any M0 issuer can now utilize BUIDL as part of its collateral composition, and benefit from its robust structure and broad recognition.”

Last month, BUIDL, which is tokenized by Securitize, also launched on BNB Chain and became available as collateral for trading on Binance, the world’s largest centralized exchange (CEX). The expansion made the fund more accessible to users and integrated it with Binance Smart Chain (BSC), which has over $7.3 billion in total value locked, according to DeFiLlama.

BUIDL also supports multiple blockchain networks like Ethereum, Solana, Polygon, Arbitrum, Optimism, Aptos and Avalanche.

This series of integrations comes after a year of strong growth for the real-world asset (RWA) sector, which now has a Distributed Asset Value of $18.2 billion – a 215% increase since the start of the year.