BlackRock To Challenge USDT And USDC’s Dominance With New Proposal
The post BlackRock To Challenge USDT And USDC’s Dominance With New Proposal appeared on BitcoinEthereumNews.com.
BlackRock is set to challenge USDT and USDC’s dominance with its new proposal for crypto exchanges to adopt its BUIDL token as collateral on the derivatives market. This forms part of the world’s asset manager’s move to gain a greater hold of the crypto market, seeing as it already holds a significant amount of bitcoins through its Spot Bitcoin ETF. BlackRock To Challenge USDT And USDC’s Dominance BlackRock’s new proposal seeks to challenge USDT and USDC’s dominance in crypto derivatives. According to a Bloomberg report, the world’s largest asset manager and its brokerage partner, Securitize, are in talks with some of the top crypto exchanges, including Binance, OKX, and Deribit, about using the BUIDL token as collateral on the derivatives market. This move challenges Tether’s USDT and Circle’s USDC since both stablecoins are the most commonly used in the crypto derivatives market. Meanwhile, it will also provide additional utility for BlackRock’s BUIDL token. Institutional investors are currently the primary users of the token as crypto prime brokers like FalconX and Hidden Road accept it as collateral among their clients, including hedge funds. Therefore, having BUIDL on platforms like the world’s largest crypto exchange, Binance, will undoubtedly expand the token’s adoption. It will also help boost the company’s revenue, considering that the asset manager currently charges a 0.5% management fee on the BUIDL token. Introducing the token into the crypto derivatives market is also strategic, considering that it accounts for most of the trading volume in the crypto space. The Asset Manager’s Hold In The Crypto Space BlackRock continues to solidify its position in the crypto space since the launch of its Spot Bitcoin ETFs. SoSoValue data shows that the asset manager currently has net assets of $25.79 billion for its Bitcoin ETF, the most among all issuers. Thanks to this, the asset…
Filed under: News - @ October 18, 2024 11:12 pm