Financial infrastructure firm BounceBit has partnered with BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) to introduce a new tool for real-world assets (RWA) yield strategy.
In a recent press release from BounceBit, the collaboration combines traditional finance with blockchain infrastructure, enabling investors to access traditional yields through crypto derivatives trading.
As per the announcement, the strategy involves conducting Bitcoin (BTC) and stablecoin trades with BUIDL as collateral, potentially increasing total annual percentage yield (APY) for investors by 24%.
BUIDL, a BlackRock private fund tokenized by Securitize and available through Securitize Markets, plays a key role in this innovative approach.
According to a post on X, the strategy represents “the first active use-case for tokenized treasuries.”
Jack Lu, Founder & CEO at BounceBit, stated, “This innovative approach demonstrates what is possible when investors can capture both U.S. dollar yields and funding rate arbitrage returns, offering institutional investors sustainable USD-denominated yield generation opportunities across market cycles.”
Last month, the Bank for International Settlements (BIS) highlighted the tokenization of RWAs on blockchains as a way to strengthen the connection between crypto and traditional finance (TradFi).
In a paper on the financial stability risks of crypto, BIS analysts emphasized that RWAs, or the tokenization of traditional assets on distributed ledgers, are enhancing the link between TradFi and decentralized finance (DeFi).
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