BlackRock’s Blockchain Exploration
BlackRock, the largest asset manager globally, is investigating the integration of popular investment products into blockchain technology.
Tokenizing ETFs
As reported by Bloomberg, the New York-based firm is considering the tokenization of exchange-traded funds (ETFs) linked to real-world assets, such as stocks, while taking regulatory factors into account.
Previous Digital Ventures
This initiative follows BlackRock’s previous engagements with digital assets, including the launch of its tokenized money-market fund, BUIDL, which amassed over $2 billion in assets in 2024 and gained popularity across cryptocurrency platforms.
Benefits of Tokenization
Tokenization refers to the creation of blockchain-based representations of traditional financial assets. For ETFs, this could enable trading outside standard hours, enhance international accessibility, and introduce new options for using shares as collateral in crypto networks.
Industry Momentum
Supporters believe that tokenization can provide instant settlement, fractional ownership, and improved market structures. The concept is gaining traction, with asset managers like Franklin Templeton also issuing tokenized classes of money-market funds.
Future Potential
According to research from Animoca Brands, the potential market for tokenizing real-world assets could reach $400 trillion in traditional finance. The market for tokenized assets already hit a record $26.5 billion in 2025, largely driven by private credit and U.S. Treasuries.
Challenges and Developments
Despite optimism, significant obstacles remain, such as reconciling traditional ETF settlement processes with the instantaneous nature of tokenized assets. However, U.S. policymakers have shown a willingness to explore controlled testing of blockchain-based markets, and Nasdaq is seeking approval for tokenized stock trading, indicating a shift towards integrating blockchain into mainstream finance.
