BlackRock Explores Blockchain ETFs in Strategic Move Beyond Treasuries
BlackRock, the world’s largest asset manager, is evaluating ways to bring exchange-traded funds (ETFs) onto blockchain networks, according to sources cited by Bloomberg. The firm is considering tokenizing funds tied to real-world assets, including equities, though any launch would require regulatory approval.
This comes after BlackRock’s initial tokenization initiative last year with the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). Backed by short-term U.S. Treasuries, repurchase agreements, and cash, the fund has quickly grown into the largest tokenized Treasury product in the world, managing about $2.2 billion.
Tokenized ETFs would mark a significant expansion of BlackRock’s blockchain efforts. Unlike traditional ETFs, which trade on stock exchanges during specific hours, tokenized versions could be issued and traded directly on-chain.
Proponents argue tokenized ETFs could offer several advantages: continuous trading around the clock, faster settlement times compared to the standard two-day process, and greater access for investors in markets where ETFs are otherwise hard to reach.
The potential products are still awaiting regulatory approval. BlackRock’s move highlights a broader industry trend, with banks, fintechs, and asset managers increasingly exploring blockchain for bonds, private credit, and mainstream equity funds.
