BlackRock is expanding the use of its tokenized money market fund, BUIDL, making it available as collateral on OKX. As part of the agreement, Standard Chartered will hold the underlying assets in regulated custody. Eligible OKX clients will be able to use BUIDL as margin collateral.
This addresses a common problem: the capital deposited as collateral often yields little or no return. BUIDL is designed to maintain a stable value of $1 and invests primarily in U.S. Treasury bonds and repurchase agreements.
Eligible investors would earn a return by using the tokenized fund to trade collateral.
BUIDL will be available as a yield-bearing margin guarantee
Blackrock’s latest initiative allows BUIDL tokens to be used on OKX in two ways. Some clients may retain assets with Standard Chartered while making them available as collateral on OKX. Others may hold the tokens directly on the exchange and continue to use them for margin trading.
A statement from OKX read:
The digital asset industry started with price discovery. The next phase focuses on integrating tokenization into the core mechanisms of global market infrastructure.
For now, the product is only offered to investors in the Middle East. According to OKX, the structure aims to make collateral more effective by allowing it to remain productive instead of sitting idle.
The role of Standard Chartered…
…consists of holding the underlying assets for clients who prefer custody outside the stock exchange. In the “collateral mirroring” model, a regulated custodian holds the assets while the exchange recognizes them for trading.
OKX and Standard Chartered launched a similar setup with Franklin Templeton in April 2025.
Tokenized RWAs continue to grow
BlackRock launched BUIDL in 2024 and tokenized it through Securitize. It has since become one of the largest tokenized money market funds available to qualified investors.
In fact, according to data from RWA.xyz, the RWA tokenization market has reached around $30 billion. However, complete trust has not yet been established. In April, the IMF warned that moving financial infrastructure to blockchain systems could accelerate market tensions and make crises harder to contain.
Final summary
- BlackRock’s BUIDL can now be used as yield-bearing collateral on OKX.
- This would transform unused margin into productive capital.
