Singaporean digital asset market maker QCP has executed the first derivatives trade using the BlackRock USD Institutional Digital Liquidity (BUIDL) tokenised fund as collateral. Claiming to be the first designated market maker for BUIDL, the firm states in a press release its belief that the transaction will reshape collateral strategies for institutional investors.

The transaction was achieved in collaboration with Securitize Credit. The digital securities issuance platform integrated BUIDL into its portfolio for a bitcoin basis trade to achieve what QCP describes as “enhanced yield strategies”.

Blackrock’s BUIDL, launched in March 2024, is a tokenised fund that operates on multiple blockchain networks, including Ethereum, Aptos, and Polygon. The BUIDL token is backed by short-term US government bonds and has a stable value pegged at US$1 each.

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QCP calls tokenised treasuries such as BUIDL the “next chapter in on-chain financial innovation”, poised to challenge stablecoins as the “cornerstone of digital finance”. One of the main differences between the two is that tokenised treasuries “offer investors the ability to retain yield, turning passive holdings into active contributors to portfolio performance”.

QCP reveals that it is exploring how BUIDL “can be further transformed into a fixed yield instrument through interest rate swap products” so that more tailored yield strategies can be made possible.