Securitize Credit and QCP Explore Potential of BUIDL in Innovative Bitcoin Basis Trade Strategies
The post Securitize Credit and QCP Explore Potential of BUIDL in Innovative Bitcoin Basis Trade Strategies appeared on BitcoinEthereumNews.com.
Securitize Credit has made waves in the crypto finance sector by teaming up with QCP, introducing an innovative approach to trading through the BlackRock USD Institutional Digital Liquidity Fund. This partnership symbolizes a pivotal move, integrating sophisticated trading strategies to enhance yield generation and capitalize on the rapidly evolving digital asset landscape. “Trades collateralized with stablecoins or dollars yield less than those using BUIDL,” emphasized Securitize, underscoring the superior benefits of utilizing this novel collateral. This article discusses Securitize’s partnership with QCP utilizing the BlackRock USD Institutional Digital Liquidity Fund for innovative trading strategies, yielding significant returns. Revolutionizing Yield Generation: Securitize’s Strategic Partnership with QCP In a groundbreaking initiative, Securitize Credit has partnered with digital asset trading firm QCP to introduce a novel trading strategy leveraging the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). This collaboration marks a significant milestone, as it facilitates the first derivatives trade backed by BlackRock’s on-chain fund as collateral, showcasing the increasing acceptance of tokenized assets in mainstream finance. The strategy involves Securitize entering into a basis trade with QCP, utilizing the tokenized BUIDL fund as collateral. Currently, this bitcoin-based basis trade reportedly yields an impressive 20.71% returns per annum for Securitize. This method, commonly referred to as a cash-and-carry trade, allows traders to effectively capitalize on the price discrepancies between the spot and futures markets, optimizing their investment outcomes. Understanding the Mechanics of Cash-and-Carry Trades in Crypto Cash-and-carry trades have become increasingly popular in the crypto industry, embraced by various trading protocols aiming to exploit arbitrage opportunities. Typically, a basis trade involves purchasing an asset in the spot market while simultaneously shorting the same asset in the futures market. As the futures contract approaches expiration, convergence typically occurs, enabling investors to pocket the narrowing price difference, known as the “basis.” Securitize’s transition from stablecoins…
Filed under: News - @ January 9, 2025 10:23 pm