BlackRock Explores Tokenization of ETFs Following Bitcoin Success
- BlackRock is considering tokenizing exchange-traded funds (ETF) on the blockchain after the success of its spot Bitcoin ETFs.
- The firm manages the world’s largest tokenized money market fund, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), with $2.2 billion in assets across various blockchains.
- Tokenizing ETFs could enable trading beyond standard hours and allow their use as collateral in DeFi applications.
- JPMorgan has described tokenization as a “significant leap” for the $7 trillion money market fund industry.
- The initiative includes collaboration with Goldman Sachs and Bank of New York Mellon to offer clients direct ownership registered on a private blockchain.
The move towards tokenization reflects growing interest in integrating traditional finance with blockchain technology, especially amid pressures from stablecoins and liquidity shifts into decentralized markets.
As BlackRock explores ETF tokenization, it aims to leverage its existing $2.2 billion BUIDL fund to enhance investment flexibility and access in evolving financial landscapes. (Source)
