I wouldn't use the store binding because I don't think it is wide enough to cover denim, batting and the backing. Additionally, I think it is too thin and won't wear well.
If you want to match the blue color, choose a denim chambray of a similar color. I would cut it on the straight grain and make it double. Obviously, this will be a working quilt and will get a lot of wear.
Another choice would be to make a scrappy binding, using several colors and prints that you may have on hand. A blue or red check would make an interesting binding.
Suzanne