BlackRock, the world’s largest asset management firm, is expanding its plans to transform traditional investment products into blockchain-based digital assets.
According to Bloomberg, the company is considering offering exchange-traded funds (ETFs) to investors by tokenizing them on the blockchain.
According to sources familiar with the matter, BlackRock is working on tokenizing ETFs based on real-world assets like stocks. This step will proceed contingent on regulatory approvals. The company first attempted this with its tokenized money market fund, BUIDL, which launched in 2024 and reached $2 billion in capital. It also achieved significant success with its spot Bitcoin ETF, launching one of the fastest-growing funds in history.
Tokenization means that digital versions of traditional assets can be traded on the blockchain. Tokenizing ETFs could offer advantages such as 24/7 trading, easy access to international investors, and the ability to be used as collateral in crypto networks.
*This is not investment advice.