From Bloomberg, September 11:
BlackRock Inc. is exploring how to give one of Wall Street’s biggest investment products a digital makeover.
The world’s largest asset manager is weighing ways to make exchange-traded funds available as tokens on the blockchain, according to people familiar with the matter, who declined to be identified citing confidential information. The New York-based firm is working on tokenizing funds tied to real-world assets, such as stocks, subject to regulatory considerations, the people said.
In 2024, BlackRock launched a tokenized money-market fund, known as BUIDL, which has grown to more than $2 billion and is popular on crypto platforms. It also follows the blockbuster debut of its spot Bitcoin ETF, which quickly became one of the most popular such funds in history. A BlackRock representative declined to comment.
Tokenization involves creating a digital version of a traditional asset that can move on blockchain systems. For ETFs, it could mean trading beyond Wall Street’s set hours, making US products easier to access abroad, and creating potential new uses as collateral in crypto networks.
That idea is drawing increased attention across the industry. Tokenized share classes of funds are seen as an early step toward a broader migration of markets onto blockchain, a shift proponents say could enable instant settlement, fractional shares, and more. Money-market funds from the likes of Franklin Templeton and BlackRock opened the door. Next, ETFs, already designed as flexible wrappers, may emerge as a proving ground for this transition.
BlackRock has been a big booster of digital assets. Beyond BUIDL, the firm has tested tokenized fund shares in trades on JPMorgan’s Onyx, now known as Kinexys, infrastructure and has positioned itself as an early adopter of digital-settlement models. The firm’s bullish posture is underscored by Chief Executive Officer Larry Fink, who has said every financial asset can be tokenized. He reiterated the view in his 2025 annual letter to investors.
It comes as exchanges like Kraken and Robinhood offer tokenized stocks overseas and as startups pilot similar services in controlled settings.
Such a shift faces big hurdles. ETFs today settle through Wall Street’s clearinghouses, while blockchain-traded tokens move instantly and around the clock. Reconciling those systems raises questions for regulators and custodians. Still, the climate has grown more permissive, with policymakers under the Trump era signaling openness to programs that allow firms to test blockchain-based markets in contained environments....
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Possibly also of interest:
February 2024 - "Tokenized, Inc: BlackRock's Plan To Own The Fractionalized World"
July 2024 - BIS: "Finternet: the financial system for the future"
January 2025 - "BlackRock CEO wants SEC to ‘rapidly approve’ tokenization of bonds, stocks: What it means for crypto"
May 2025 - "Tokenization’s trillion dollar promise: Wall Street leaders make their case to the SEC"
May 2025 - BIS/New York Fed: Hell Yes We Can Run Monetary Policy In A Tokenized World
May 2025 - Boston Consulting Group, Ripple Predict Tokenization To Reach $18.9 Trillion by 2033
And pretty soon you're talking real money....
June 2025 - "Coinbase seeks SEC approval for ‘tokenized equities’ — Report"
June 2025 - "Dinari granted first broker-dealer registration to offer tokenized stocks"
July 2025 -"Robinhood's CEO on the Plan to Tokenize Everything" (HOOD)
July 2025 - SEC Commissioner Peirce: "Enchanting, but Not Magical: A Statement on the Tokenization of Securities"
August 2025 - "S&P Global and JPMorgan Partner to Tokenize Carbon Credits"
And many, many more.
