The
allure
of
using
these
tokens
as
collateral
is
that
it
allows
traders
to
keep
earning
a
yield
while
using
them
for
margin
for
a
trade,
as
opposed
to
posting
stablecoins
for
collateral.
Hashnote’s
$320
million
USYC
money
market
fund
token
got
listed
on
Deribit
as
cross-margin
collateral
option
earlier
this
month.
Institutional
trading
services
FalconX
and
Hidden
Road
already
accept
BUIDL
as
collateral
asset.
State
Street
sees
significant
potential
in
tokenized
collateral
asset
in
traditional
finance,
too.
Donna
Milrod,
the
bank’s
chief
product
officer,
said
in
an
interview
this
month
that
collateral
tokens
could
help
mitigate
liquidity
stress
during
financial
crises,
for
example
allowing
pension
funds
to
post
money
market
tokens
for
margin
calls
without
selling
underlying
assets
to
raise
cash.