BounceBit Pilots Bitcoin Trading Strategy Using BlackRock's BUIDL as Collateral

BounceBit, a crypto infrastructure provider using features from both centralized (CeFi) and decentralized finance (DeFi), has executed a bitcoin (BTC) derivatives trading strategy using BlackRock's yield-generating tokenized money market fund, BUIDL, to enhance returns.The strategy, to be rolled out to institutions and retail users, consisted of two main components: a bitcoin basis trade, involving a long position in the spot market while shorting futures, and a short position in BTC put options, both collateralized by BUIDL tokens.The basis trade, also known as cash and carry arbitrage, alone generated an annualized yield of 4.7%, with put option writing contributing an additional 15% source: https://www.coindesk.com/markets/2025/05/19/bouncebit-pilots-bitcoin-trading-strategy-using-blackrocks-buidl-as-collateral