- According to a Bloomberg report, BlackRock is exploring plans to tokenise its exchange-traded funds (ETFs) on blockchain networks, a move that would allow them to trade 24/7 and be used as collateral in decentralised finance (DeFi).
- The firm, which already operates the world’s largest tokenised money market fund, BUIDL, is actively pursuing the vision of CEO Larry Fink.
- Tokenisation can make it easier and more efficient to trade assets by reducing costs and speeding up settlements, though any such initiative would face significant regulatory hurdles.
BlackRock is weighing plans to tokenise exchange-traded funds on blockchain networks, Bloomberg reported Thursday, citing people familiar with the matter.
The firm is evaluating the viability of tokenising funds linked to real-world assets (RWAs) as a way to attract more investors. ETFs are already one of the dominant investment products globally, with their numbers now exceeding those of publicly listed stocks (though any initiative would face regulatory obstacles, as there’s no defined framework for such ETFs).
In any case, tokenising ETFs could enable them to trade outside traditional market hours and expand their use as collateral in decentralised finance markets.
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Tokenisation Keeps on Rising
Tokenisation breaks down illiquid assets, like real estate or private equity, into smaller digital units, lowering entry barriers and enabling markets that trade 24/7 worldwide. Regarding infrastructure, blockchain records reduce reliance on intermediaries and compress settlement from days to minutes, lowering costs and complexity.
BlackRock has prior experience in the sector through its USD Institutional Digital Liquidity Fund (BUIDL), the world’s largest tokenised money market fund, according to RWA.xyz data. BUIDL manages US$2.2B (AU$3.34B) across Ethereum, Avalanche, Aptos, Polygon, and other blockchains.
Matt Hougan, CIO of Bitwise, recently stated that the transformation of assets like stocks and bonds into blockchain-based instruments will be a game changer in the upcoming years, and it seems more financial institutions are gradually adopting similar approaches.
Tokenised money funds now represent the largest real-world asset category on-chain, with a market capitalisation exceedingUS $7.4B (AU$11.2B) as of September 2025. Exchanges and banks are also testing tokenisation of bonds, private credit, and equity products.
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