BlackRock explores tokenized ETF shares to expand digital infrastructure
BlackRock is exploring the possibility of tokenizing exchange-traded fund (ETF) shares as part of its strategy to expand digital asset infrastructure beyond traditional market boundaries.
According to BlackRock’s report, the world’s largest asset manager is considering blockchain-based ETF shares. The news surfaced alongside Nasdaq’s filing with the U.S. Securities and Exchange Commission (SEC) to trade tokenized stocks and ETFs on its platform.
Bloomberg News reported on September 11 that BlackRock is evaluating blockchain versions of ETFs backed by real-world assets (RWA), including equities, citing sources familiar with the confidential plan.
The initiative builds on BlackRock’s $2.2 billion tokenized money market fund BUIDL, launched in March 2024, just two months after the debut of its Bitcoin ETF.
BlackRock CEO Larry Fink has repeatedly said that any financial asset can be tokenized and reiterated this view in his 2025 annual letter to investors.
Tokenized ETF shares would allow trading beyond Wall Street’s regular hours, improve international access to U.S. products, and create new collateral opportunities in crypto networks.
New opportunities for tokenized funds
ETFs already offer a wide range of assets and trading mechanisms that align well with blockchain implementation. However, the report highlights current challenges, including reconciling ETF settlements through Wall Street clearinghouses with blockchain’s instant 24/7 trading. These issues raise both technical and regulatory questions for custodians managing the transition between traditional and digital infrastructure.
BlackRock’s research underscores how traditional financial institutions are assessing blockchain technology to enhance market infrastructure, including collateral flows and settlement speeds.
Tokenized ETFs could become yet another bridge between traditional and decentralized finance.
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