BlackRock Weighs Tokenized ETFs in Expansion Beyond Treasuries
BlackRock, the world’s largest asset manager, is exploring how to bring exchange-traded funds (ETFs) onto blockchain platforms, sources told Bloomberg. The firm is reportedly considering tokenizing funds tied to real-world assets, including stocks, though any launch would be subject to regulatory approval.
This exploration follows BlackRock’s first tokenization venture last year with the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). Backed by short-term U.S. Treasuries, repurchase agreements, and cash, BUIDL has grown into the largest tokenized Treasury product globally, managing nearly $2.2 billion.
Tokenizing ETFs would represent a significant step into blockchain-based financial products. Instead of trading on stock exchanges during standard market hours, ETF shares could be issued and transacted as on-chain tokens.
Advocates say tokenized ETFs could offer several advantages: 24/7 trading, settlement within minutes rather than days, and broader accessibility for investors in regions where ETFs are less available.
The rollout of such products depends on regulatory approval. BlackRock’s exploration mirrors a broader trend as banks, fintechs, and asset managers increasingly test blockchain technology for bonds, private credit, and mainstream equity funds.
