Key Takeaways
- BlackRock seeks to tokenize its leading ETFs with exposure to real-world assets like equities and bonds.
- The move could open 24/7 trading, global accessibility, and new use cases in DeFi.
- BlackRock already operates the world’s largest tokenized money market fund, BUIDL.
BlackRock, the world’s largest asset manager, is preparing to take one of its boldest steps yet: tokenizing some of its most successful exchange-traded funds (ETFs).
According to a Bloomberg report, the initiative would convert top-performing ETFs with exposure to equities and bonds into blockchain-based tokens, allowing investors to trade around the clock, unlock fractional ownership, and potentially use the products as collateral in decentralized finance (DeFi) applications.
BlackRock Pushes for 24/7 Tokenized Trading
The push comes as Wall Street deepens its exploration of tokenization, widely seen as the next frontier in financial markets.
BlackRock’s plan would extend the firm’s ETF dominance—its iShares suite already commands trillions in assets—into a blockchain-native format.
Tokenized ETFs could introduce programmable features, such as automated dividend distribution, while widening global access beyond traditional market hours.
If successful, the effort could accelerate the integration of traditional finance with digital assets.
Other financial giants, including Goldman Sachs, Bank of New York Mellon, and JPMorgan, have already begun testing tokenization pilots.
Galaxy Digital became the first Nasdaq-listed firm to tokenize its stock earlier this year.
Still, regulatory uncertainty looms. The U.S. Securities and Exchange Commission (SEC) is expected to scrutinize the proposal closely.
While approval may be delayed, analysts suggest BlackRock’s track record and Washington’s shifting stance on digital assets increase the odds of eventual clearance.
BlackRock’s Tokenization Track Record
The move builds on BlackRock’s existing presence in blockchain-based finance.
Its USD Institutional Digital Liquidity Fund (BUIDL), the world’s largest tokenized money market fund, already manages over $2.2 billion in assets.
Available on Ethereum, Avalanche (AVAX), Aptos (APT), and Polygon(POL), BUIDL demonstrates the firm’s commitment to multi-chain infrastructure.
CEO Larry Fink has long argued that tokenization is inevitable, telling investors that “every financial asset can be tokenized” to cut costs and improve efficiency across global markets.
The company’s experiment with tokenized ETFs could serve as the clearest test yet of that vision.
With ETFs now outnumbering public companies worldwide, BlackRock’s entrance into tokenized ETFs could shift the balance of financial innovation.
What has so far been a niche experiment for exchanges like Kraken and Robinhood may become mainstream—led by the firm that already dominates traditional ETF investing.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
