BlackRock, the world's largest asset manager, is reportedly considering a move to tokenize exchange-traded funds (ETFs) on the blockchain. This exploration follows the massive success of its spot Bitcoin ETFs, which have attracted billions in capital.
According to sources cited by Bloomberg, BlackRock is evaluating tokenizing funds that hold real-world assets. This could unlock significant benefits for investors, including:
This initiative, if it moves forward, would merge traditional investment vehicles with cutting-edge blockchain technology, a pivotal step in the evolution of finance.
This isn't BlackRock's first venture into tokenization. The firm already manages the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), the world's largest tokenized money market fund, which holds over $2.2 billion in assets on multiple blockchains, including Ethereum and Polygon.
Other major financial institutions, such as JPMorgan and Goldman Sachs, are also pursuing similar initiatives. JPMorgan has called tokenization a "significant leap" for the money market fund industry, and analysts believe these tokenized funds could help traditional finance compete with the growing popularity of stablecoins.
BlackRock's potential push into tokenized ETFs highlights a broader trend of bridging traditional finance and blockchain. While stablecoin adoption is accelerating, clearer regulations are expected to support wider tokenization efforts. If BlackRock moves forward, it could fundamentally change how ETFs are traded and used, placing the firm at the forefront of financial innovation.
September 2025, Cryptoniteuae