BlackRock Explores Tokenizing ETFs in Major Blockchain Push

BlackRock, the world’s largest asset manager, is reportedly considering a significant step into the blockchain space by exploring the tokenization of its exchange-traded funds (ETFs). According to Bloomberg, the New York-based firm is eyeing the integration of its ETFs with blockchain technology, potentially including funds tied to real-world assets like stocks. This move, which hinges on regulatory considerations, signals BlackRock’s growing commitment to blending traditional finance with decentralized technologies.

The firm’s interest in tokenization aligns with its established presence in the crypto market. BlackRock already manages the iShares Bitcoin Trust and iShares Ethereum Trust, the largest ETFs tracking Bitcoin and Ethereum, with cumulative inflows of $55 billion and $12.7 billion, respectively. Both funds achieved a remarkable milestone by reaching $10 billion in assets under management within a year, a feat shared by only one other product in the industry.

Wall Street’s Tokenization Trend Gains Momentum

Tokenization, the process of representing traditional assets as digital tokens on a blockchain, is gaining traction across Wall Street. BlackRock’s potential move follows similar efforts by competitors, such as Fidelity, which recently launched a blockchain-based version of one of its Treasury money market funds tied to the Fidelity Digital Interest Token. Additionally, Nasdaq is seeking approval from the U.S. Securities and Exchange Commission to trade tokenized securities alongside conventional stocks, highlighting the industry’s shift toward blockchain integration.

BlackRock is no stranger to onchain products. Its BlackRock USD Institutional Digital Liquidity Fund (BUIDL) became the first tokenized fund to surpass $1 billion in assets in March and now manages over $2 billion. This success underscores BlackRock’s ability to navigate the complexities of tokenized assets while maintaining investor confidence. The firm’s broader crypto-related offerings, such as the iShares Blockchain and Tech ETF, further demonstrate its strategic focus on the intersection of finance and technology, even if these funds do not directly invest in digital tokens.

The tokenized equities market, including stocks and ETFs, remains in its early stages but is attracting attention from major players. Platforms like Robinhood and Kraken have already introduced onchain versions of popular U.S. equities, such as Tesla and Apple, catering to investors seeking the benefits of blockchain’s transparency and efficiency. Gemini recently expanded to the EU to offer tokenized stocks like MSTR. BlackRock’s potential entry into this space could accelerate the adoption of tokenized assets, given its unmatched scale and influence in the financial industry.

BlackRock CEO Larry Fink has been vocal about his belief that tokenization will eventually encompass all financial assets. The firm’s crypto assets under management reached $50 billion in the first quarter of 2025, bolstered by $3 billion in net inflows during that period. This growth reflects strong investor appetite for crypto-related products and confidence in BlackRock’s ability to deliver innovative solutions.