BlackRock is preparing to bring its multi-trillion-dollar exchanged funds empire on-chain, exploring plans to tokenize exchange-traded funds following the breakout success of its spot Bitcoin ETFs.
Sources close to the matter say the asset management giant is actively working on blockchain-based versions of the funds linked to real-world assets (RWAs), such as equities and bonds. The move opens the door to 24/7 ETF trading, obliterating the limitations of weekday-only Wall Street hours.
Tokenization turns real-world assets into blockchain-based tokens, enabling fractional ownership, instant settlement, and global access. While BlackRock hasn’t named which funds will be tokenized first, the shift builds on its success with IBIT and BUIDL, two of TradFi’s most aggressive blockchain bets to date.
Both products have become top performers among traditional finance (TradFi) players entering the crypto space.
Wall Street’s blockchain experiment accelerates
CEO Larry Fink has previously said that “every financial asset will be tokenized”, and BlackRock’s new investment assets initiative could be a major catalyst toward that vision. If executed, the tokenized ETFs could offer TradFi-grade exposure to global retail and institutional investors alike, without the friction of outdated settlement systems.
The move comes as Nasdaq pushes to modernize its infrastructure. The exchange has filed a proposal with the U.S. Securities and Exchange Commission (SEC) to permit the trading of tokenized equities and ETPs directly on its main board.
Kraken and Robinhood may have tokenized stocks, but BlackRock brings institutional firepower and could force the industry to follow.
BlackRock’s tokenized funds push rewires the core of asset management, scrapping legacy rails, flattening borders, and gutting settlement delays. If it lands, the rest of Wall Street won’t have a choice.
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