BlackRock is preparing to tokenize ETFs and other real-world asset funds, according to Bloomberg. If regulators sign off, the move would expand the firm’s on-chain product set and could accelerate institutional adoption of crypto.
BlackRock launched BUIDL with Securitize in 2024 to offer tokenized exposure to U.S. Treasuries. Now it reportedly wants to extend that model to equity ETFs, bond and money market funds, real estate and private credit — sectors that represent trillions in assets.
Why it matters: tokenized ETFs enable 24/7 settlement and faster transfers, and they let fund holdings be used inside decentralized finance for lending, collateral and composability. That utility could redirect liquidity toward the most usable on-chain assets and boost demand for stablecoins and DeFi primitives.
Ethereum may be a principal beneficiary — BUIDL runs on Ethereum — but the ultimate winners depend on where firms choose to mint tokenized funds and on regulatory guardrails. Execution at scale by a firm like BlackRock would likely trigger follow‑on moves from other large managers.
Risks to watch: tokenization raises legal, operational and custodial questions. Regulators must approve product structures, and market participants need robust custody, settlement and compliance frameworks to avoid amplifying systemic risk.
Bottom line: BlackRock’s push into tokenized ETFs would be a major step for institutional adoption. It won’t transform markets overnight, but approved and well-designed tokenized funds could meaningfully grow on‑chain assets and weave traditional finance into crypto infrastructure.
Source: Decrypt. Read the original coverage for full details.