BlackRock (NYSE:BLK) is integrating its tokenized money market fund BUIDL with cryptocurrency exchange OKX as Bitcoin (CRYPTO: BTC) spot ETFs continue to attract significant inflows.

Under the arrangement, the fund can be used as collateral while continuing to generate yield from low-risk assets such as U.S. Treasuries.

The underlying assets remain held in custody by Standard Chartered, ensuring regulated backing while allowing traders to deploy the tokenized units as margin, Bloomberg reported on Tuesday.

The structure is designed to address a long-standing inefficiency in crypto markets, where posted collateral typically remains idle and earns no return.

By contrast, tokenized instruments like BUIDL allow capital to remain productive without increasing risk exposure.

The development highlights accelerating convergence between traditional finance and digital asset infrastructure, particularly through tokenized real-world assets (RWAs). While adoption remains early, industry participants increasingly view tokenization to improve capital efficiency, settlement speed, and access to liquidity.

Despite the innovation, global regulators including the International Monetary Fund have warned that migrating financial infrastructure onto blockchain rails could introduce systemic risks if not properly managed, particularly as interconnections between crypto platforms and traditional markets deepen.

Strong ETF inflows suggest continued institutional interest in Bitcoin, even amid macro uncertainty. Spot Bitcoin ETFs recorded $824 million in net inflows for the week ended Apr.24.

The inflows were led by BlackRock’s iShares Bitcoin Trust (NASDAQ:IBIT), which alone accounted for $732 million of the total.

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