BlackRock, the trillion-dollar asset manager, is weighing a strategy to tokenize ETFs connected to stocks and other real-world holdings, according to Bloomberg.
The initiative could mark a new chapter for the ETF industry. Tokenized ETFs would enable investors to trade shares around the clock, boost liquidity, and lower entry barriers for participants worldwide.
The move aligns with the push to bridge decentralized finance (DeFi) with traditional financial markets (TradFi). If successful, BlackRock’s move could lay the groundwork for new types of capital markets within the cryptocurrency ecosystem.
Building on Past Tokenization Experiments
This is not BlackRock’s first step into tokenization. In 2024, the firm partnered with blockchain company Securitize to launch its tokenized money market fund, known as BUIDL.
The fund quickly gained traction, reaching a market capitalization of over $2.2 billion in less than 18 months, according to CoinGecko data. That success demonstrated strong demand for blockchain-based investment products. BlackRock also entered the digital asset space earlier with its spot Bitcoin ETF.
CEO Larry Fink’s Vision
Larry Fink, BlackRock’s chief executive, has long expressed optimism about tokenization. He has repeatedly argued that “every asset can be tokenized,” predicting it could revolutionize the way global financial markets operate.
For Fink, tokenization is more than a technical upgrade. He views it as a mechanism to increase transparency, optimize efficiency, and lower costs for investors. His comments suggest BlackRock’s blockchain strategy is not a short-term experiment, but a long-term plan.
Expanding Footprint in Crypto ETFs
Beyond tokenization, BlackRock is already a dominant player in crypto ETFs. The firm manages the iShares Bitcoin Trust (IBIT) and the iShares Ethereum Trust (ETHA).
Both products have reached a milestone rarely seen in digital assets, surpassing $85 billion in total assets under management. That places them among the top crypto ETFs by size, underscoring strong investor confidence in BlackRock’s approach.
Regulatory Shifts Fuel Innovation
The timing of BlackRock’s move coincides with regulatory progress in the U.S. Securities and Exchange Commission (SEC). Chairman Paul Atkins recently unveiled Project Crypto, an initiative to explore the possibility of bringing substantial segments of the U.S. financial market onto blockchain infrastructure.
At the same time, Nasdaq has filed a proposal with the SEC to list tokenized stocks and exchange-traded products.
Competition From Exchanges and Fintech Firms
Meanwhile, BlackRock is not alone in the race. Several trading platforms, including Kraken, Robinhood, Bybit, Coinbase, and Gemini, are already testing tokenized stock offerings. Some are preparing to launch products that mirror popular U.S. equities in blockchain form.
This competitive landscape highlights how rapidly tokenization is transitioning from concept to reality. For investors, it could mean more choices and greater flexibility in managing portfolios.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
