Deribit has just launched BUIDL as a supported currency on the platform. This launch includes:
- Deposits and withdrawals (whitelisting required)
- Zero fee spot market vs USDC
- Cross collateral inclusion (2 days after launch)
- Reward payments
The BlackRock USD Institutional Digital Liquidity Fund (BUIDL) is a tokenised US treasury fund whose core investments are short term US treasuries and overnight repo (reverse repurchase agreements). These low risk, very liquid investments, allow the fund to generate a yield which is used to pay rewards to holders of the BUIDL token.
While BUIDL is technically available on several different blockchains, Deribit currently only supports the ERC-20 version on the Ethereum blockchain. As of May 2025, the vast majority of BUIDL supply is held on the Ethereum blockchain as an ERC-20 token. For more details on which chains the token exists on, along with other information on the fund and token, visit the Securitize site here.
Rewards
The value of the BUIDL token is pegged to $1, and this value is backed by the cash, US treasuries, and overnight repo holdings of the fund. The return generated by the fund’s investments is then paid to holders of the token. Due to this design, the BUIDL token could be thought of as similar to existing dollar based stablecoins (e.g. USDC, USDT), but with the addition of interest being paid to holders.
On Deribit, holders of BUIDL will receive the rewards each day based on the minimum balance they have held in their Deribit account in the previous 24 hours.
Typically, rewards are paid into each subaccount separately, however accounts that utilise certain external custody solutions may receive rewards for all subaccounts into their main account.
For more information on the rewards payments, check the Deribit Knowledge Base.
How to get BUIDL
All Deribit users are permitted to buy and sell BUIDL tokens in the spot markets on Deribit, with no extra requirements. However, any on-chain transfers, which includes deposits from outside of Deribit and withdrawals from Deribit to external addresses, will first require the addresses to be whitelisted with Securitize.
Yield generating tokens
Deribit now supports several yield generating tokens. BUIDL, along with the previously added USDe and USYC, belongs to a group of coins that are designed to remain stable while also generating yield. USDe and BUIDL pay the yield as a separate payment to holders, whereas the yield for USYC is accrued via an increase in the token price.
Deribit also supports stETH (staked ETH), which is another token that generates yield, but the value of stETH is tied to the price of ETH, rather than the US dollar.
All of these tokens benefit from being tradeable 24/7/365 on centralised crypto exchanges such as Deribit, as well as from their ability to be self-custodied if desired. They also have very small minimum sizes, meaning small traders are also able to access the benefits of yield generating tokens.
Cross collateral on Deribit
Other than simply holding and trading them, the main benefit to Deribit users of these yield generating tokens is their inclusion in the cross collateral system.
When cross collateral is enabled in a Deribit account, it allows the trader to use currencies other than the settlement currency of an instrument as collateral to trade that instrument. Any currency that is considered a cross collateral currency can be used.
Each of the yield generating tokens available on Deribit is considered a cross collateral currency. This means that they can be used as collateral to trade any of the derivative instruments on Deribit.
This allows traders to retain access to the derivatives of the more volatile assets, while keeping at least a portion of their funds in much more stable assets, all while those stable assets also generate a yield.
Stablecoins such as USDC and USDT can also be used if a trader prefers, however these coins do not pass on any yield to the holders of the token, making them less capital efficient.
For those wanting to maximise capital efficiency, it is well worth looking into Deribit’s cross collateral feature in more detail. There is more information on cross collateral in this article, but as always, the most up to date information can be found in the Deribit Knowledge Base here.
