Financial infrastructure firm BounceBit is tapping into BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) for a new real-world assets (RWA) yield strategy tool.
According to a new press release from BounceBit, the collaboration mixes traditional finance with blockchain infrastructure, allowing investors to leverage traditional yields with crypto derivatives trading.
Per the announcement, the strategy involves executing Bitcoin (BTC) and stablecoin trades with BUIDL as collateral. BounceBit says the trading strategy could raise total annual percentage yield (APY) for investors by 24%.
BUIDL is a BlackRock private fund, which is tokenized by Securitize and made available through its Securitize Markets.
According to a post to the social media platform X, the strategy is “the first active use-case for tokenized treasuries.”
Says Jack Lu, Founder & CEO at BounceBit,
“This innovative approach demonstrates what is possible when investors simultaneously capture both U.S. dollar yields and funding rate arbitrage returns, potentially creating opportunities for institutional investors seeking sustainable USD-denominated yield generation across market cycles.”
Last month, the Bank for International Settlements (BIS) said that the tokenization of RWAs on blockchains will develop stronger links between crypto and traditional finance (TradFi).
In a paper on the financial stability risks of crypto, BIS analysts say that RWAs – or the tokenization of traditional assets on distributed ledgers – are creating an increased connection between TradFi and decentralized finance (DeFi).
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