Key Takeaways
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BlackRock seeks to tokenize its leading ETFs with exposure to real-world assets like equities and bonds.
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The move could open 24/7 trading, global accessibility, and new use cases in DeFi.
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BlackRock already operates the world’s largest tokenized money market fund, BUIDL.
BlackRock, the world’s largest asset manager, is preparing to take one of its boldest steps yet: tokenizing some of its most successful exchange-traded funds (ETFs).
According to a Bloomberg report, the initiative would convert top-performing ETFs with exposure to equities and bonds into blockchain-based tokens, allowing investors to trade around the clock, unlock fractional ownership, and potentially use the products as collateral in decentralized finance (DeFi) applications.
The push comes as Wall Street deepens its exploration of tokenization, widely seen as the next frontier in financial markets.
BlackRock’s plan would extend the firm’s ETF dominance—its iShares suite already commands trillions in assets—into a blockchain-native format.
Tokenized ETFs could introduce programmable features, such as automated dividend distribution, while widening global access beyond traditional market hours.
If successful, the effort could accelerate the integration of traditional finance with digital assets.
Other financial giants, including Goldman Sachs, Bank of New York Mellon, and JPMorgan, have already begun testing tokenization pilots.
Galaxy Digital became the first Nasdaq-listed firm to tokenize its stock earlier this year.
Still, regulatory uncertainty looms. The U.S. Securities and Exchange Commission (SEC) is expected to scrutinize the proposal closely.
While approval may be delayed, analysts suggest BlackRock’s track record and Washington’s shifting stance on digital assets increase the odds of eventual clearance.
The move builds on BlackRock’s existing presence in blockchain-based finance.
Its USD Institutional Digital Liquidity Fund (BUIDL), the world’s largest tokenized money market fund, already manages over $2.2 billion in assets.
Available on Ethereum, Avalanche (AVAX), Aptos (APT), and Polygon(POL), BUIDL demonstrates the firm’s commitment to multi-chain infrastructure.
CEO Larry Fink has long argued that tokenization is inevitable, telling investors that “every financial asset can be tokenized” to cut costs and improve efficiency across global markets.
The company’s experiment with tokenized ETFs could serve as the clearest test yet of that vision.
With ETFs now outnumbering public companies worldwide, BlackRock’s entrance into tokenized ETFs could shift the balance of financial innovation.