BUIDL, BlackRock’s tokenized U.S. Treasury fund, is now accepted as collateral for stablecoins issued on the M0 platform, the teams revealed on Thursday, Dec. 4.

The update gives M0 issuers access to the largest tokenized Treasury fund to back their stablecoins. BUIDL has over $2 billion in total assets, down roughly 30% over the past month, even as the fund’s price remained steady at $1. At the same time, the number of holders grew by more than 3%, according to RWAxyz.

The move highlights a broader push to make stablecoins more secure, give issuers more flexibility, and boost on-chain liquidity. This comes as the stablecoin sector has grown quickly, with its market capitalization rising to nearly $308 billion from $199 billion over the past year, according to DeFiLlama.

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