BlackRock, recognized as the largest asset management company globally, is broadening its initiatives to convert conventional investment vehicles into blockchain-enabled digital assets.
As reported by Bloomberg, the firm is exploring the possibility of providing exchange-traded funds (ETFs) to investors through tokenization on the blockchain.
Insiders indicate that BlackRock is in the process of tokenizing ETFs linked to tangible assets such as equities. This endeavor will advance pending regulatory approvals. The company’s initial foray into this space was with its tokenized money market fund named BUIDL, which debuted in 2024 and amassed $2 billion in capital. Additionally, it experienced remarkable success with its spot Bitcoin ETF, which became one of the fastest-growing funds ever launched.
The concept of tokenization allows for digital representations of traditional assets to be traded on blockchain platforms. By tokenizing ETFs, benefits could include round-the-clock trading opportunities, simplified access for global investors, and their potential use as collateral within cryptocurrency networks.
*This does not constitute financial advice.