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- BlackRock considers expanding tokenized ETFs to crypto and stocks.
- Regulatory approval remains a crucial step for on-chain assets.
- Tokenization could enable 24/7 trading and instant settlements.
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BlackRock, the world’s largest asset manager, is reportedly considering a major expansion of its tokenized product lineup, potentially bringing both crypto and traditional ETFs on-chain. According to Bloomberg, the move would allow investors to trade digital tokens representing assets like stocks, though regulatory approval remains a key hurdle. The initiative signals a growing interest in bridging traditional finance with blockchain technology.
BlackRock’s Crypto Momentum
Since launching its spot Bitcoin (BTC) and Ethereum (ETH) ETFs less than two years ago, BlackRock’s crypto holdings have surged to an impressive $100 billion. The firm also debuted its first tokenized money market fund, BUIDL (BlackRock USD Institutional Liquidity Fund), in March 2024. With a market cap of $2.2 billion and backing from 90 firms across six blockchain networks, the fund demonstrates BlackRock’s commitment to digital asset innovation.
CEO Larry Fink emphasized the transformative potential of tokenization, stating, “Every asset can be tokenized…Markets would never need to close. Settlements would be instantaneous.” He called tokenization the most “disruptive innovation since ETFs,” highlighting the potential for faster, 24/7 trading and seamless settlement.
Skepticism and Regulatory Hurdles
Despite the enthusiasm, critics remain cautious. Bloomberg ETF analyst Eric Balchunas noted that the “on-chain” asset segment is still small and questioned the consumer value proposition. Meanwhile, SEC Commissioner Hester Peirce confirmed that tokenized stocks would still be considered securities, requiring compliance with existing laws
We need to define the trend better: If by 'tokenization' you mean the back office (plumbing) of TradFi will be slightly more efficient by utilizing blockchain technology? Then sure, fine, probably will but zzzz. What is implied tho by the hype is getting actual investors to sell… https://t.co/SzXROTB9oi
— Eric Balchunas (@EricBalchunas) September 11, 2025
Regulators are actively working to clarify rules amid surging interest. Nasdaq has also requested permission to list tokenized equities with rights equal to traditional shareholders, signaling a broader institutional push toward digital securities.
Tokenized Markets on the Rise
BlackRock’s exploration of tokenized ETFs underscores the rapid evolution of financial markets. While regulatory challenges and skepticism remain, the potential for continuous trading, instantaneous settlements, and broader asset accessibility could redefine investing in the coming years. The fusion of blockchain and traditional finance may soon move from niche experimentation to mainstream adoption.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: BlackRock’s $100B Crypto Portfolio: Bitcoin Surges While Ethereum Faces Outflows
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
