QCP Capital Leverages Blackrock’s BUIDL Tokenized Fund in Groundbreaking Derivatives Trade

QCP Capital, a leading subsidiary of QCP Group, has made waves in the financial world by executing a groundbreaking derivatives trade using Blackrock’s BUIDL tokenized fund as collateral. Partnering with Securitize Credit, the initiative marks a significant step forward in integrating blockchain technology with traditional financial markets, particularly for institutional investors.

Launched in early 2024, Blackrock’s BUIDL, officially the Blackrock USD Institutional Digital Liquidity Fund, represents a cutting-edge tokenized investment product. Designed to merge blockchain’s agility with the reliability of traditional finance, BUIDL offers institutional investors a unique way to access liquidity and returns.

Operating on blockchain networks like Ethereum, Aptos, and Polygon, BUIDL provides investors with stable-value tokens pegged at $1 each. It stands out with features such as instant transaction settlement, real-time dividend accrual, and 24/7 liquidity. With a minimum investment requirement of $5 million, the fund caters to institutional clients seeking innovative yet secure financial solutions.

QCP Capital’s designation as a market maker for BUIDL set the stage for this trailblazing derivatives trade. In collaboration with Securitize Credit, the transaction involved a  Bitcoin (BTC) basis trade, leveraging BUIDL as collateral.

BUIDL’s intrinsic yield of 4.25% was amplified through QCP’s specialized trading strategies, enabling an annual return of over 14%. This remarkable outcome illustrates how tokenized assets like BUIDL can serve as powerful tools to enhance portfolio yields while maintaining a risk profile comparable to traditional stablecoins.

This transaction underscores a broader movement within the financial sector. Tokenized treasuries, such as BUIDL, are emerging as credible alternatives to stablecoins for collateral use. Unlike traditional stablecoins, BUIDL combines regulatory compliance with yield-generation capabilities, making it particularly appealing for institutions striving to maximize performance without sacrificing liquidity or security.

The involvement of Securitize Credit in this milestone trade highlights the growing adoption of blockchain-based assets in structured finance. By incorporating BUIDL into its trading portfolio, Securitize demonstrates how tokenized funds can bridge decentralized finance (DeFi) and traditional investment structures, unlocking new opportunities for efficiency and growth.

QCP Capital has signalled its intention to explore further applications of BUIDL within its trading framework. Among the possibilities being considered is the use of BUIDL as a fixed-yield instrument through interest rate swaps. These advancements reflect an ongoing shift toward blockchain-driven solutions for managing risk and optimizing returns in institutional finance.

As tokenized assets gain traction, their potential to reshape traditional financial systems becomes increasingly evident. With pioneering initiatives like this derivatives trade, QCP Capital and its partners are leading the charge in demonstrating how blockchain innovation can drive meaningful progress for institutional investors.

This development isn’t just about leveraging technology—it’s about redefining what’s possible in a modern, interconnected financial ecosystem.

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