BlackRock Launches $2.5B Tokenized Fund on OKX for Yielding Collateral
BlackRock has brought its $2.5 billion USD Institutional Digital Liquidity Fund onto OKX, enabling tokens held in Standard Chartered custody to serve as yield-bearing margin collateral. Initially available to Middle East investors, the fund invests in Treasuries and repurchase agreements to maintain a stable $1 value while delivering capital efficiency.
1. Tokenization Structure
BlackRock has established a structure with OKX where tokens of its USD Institutional Digital Liquidity (BUIDL) Fund are held in regulated custody at Standard Chartered, then made available as margin collateral on the exchange. This arrangement allows assets to remain productive by earning yield while being posted for trading.
2. Fund Mechanics and Access
The BUIDL fund invests exclusively in U.S. Treasuries and repurchase agreements to maintain a stable $1 net asset value. Initially limited to institutional investors in the Middle East, the tokenized fund offers a phased rollout as enrollment expands globally.
3. Dual On-Exchange and Off-Exchange Model
This dual off-exchange and on-exchange model enhances capital efficiency for institutions that require specific custody arrangements without sacrificing yield generation. Clients can choose between custodial options while deploying the same pool of assets for margin trading.
4. Broader Tokenization Trend
Real-world asset tokenization has grown to approximately $30 billion, up about 400% since the start of last year, highlighting rising institutional demand. BlackRock's move builds on earlier collaborations and signals a continued convergence of traditional asset management and blockchain infrastructure.