BlackRock Plans To Tokenize ETFs Following Bitcoin ETF Success

The world’s largest asset manager, BlackRock, is reportedly planning to tokenize exchange-traded funds on the blockchain. This follows the firm’s success with its Bitcoin ETF, which has opened it to the crypto industry.

BlackRock To Tokenize ETFs After IBIT Success

According to a Bloomberg report, the asset manager is exploring how to tokenize ETFs and make them available on-chain. The firm plans to tokenize funds that have ties to real-world assets (RWAs), including stocks.

This follows BlackRock’s success with its iShares Bitcoin ETF (IBIT), which is the largest BTC fund. Notably, the asset manager already has its BlackRock USD Institutional Digital Liquidity Fund (BUIDL), a tokenized money market fund, which has a market capitalization of just over $2 billion.

This development comes as tokenization gains ground on Wall Street. Galaxy Digital just became the first Nasdaq-listed firm to tokenize its common stock. Meanwhile, Nasdaq just filed with the SEC, seeking approval to let investors trade tokenized stocks on its platform.

The SEC has already suggested that it is open to supporting the tokenization push from firms such as BlackRock. The commission already launched ‘Project Crypto,’ which aims to enable the U.S. markets to move on-chain. The agency, alongside the CFTC, is also weighing how it can allow these markets to trade 24/7 just like the crypto market.

Meanwhile, it is worth mentioning that BlackRock CEO Larry Fink is an advocate of tokenization. Earlier this year, Fink called on the SEC to approve tokenization of bonds and stocks, as it would help save costs for institutions. He noted that this will also make investing easier and more cost-effective.

✓ Share:

Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several niches. His speed and alacrity in covering breaking updates are second to none. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand.

Boluwatife is also a lawyer, who holds a law degree from the University of Ibadan. He also holds a certification in Digital Marketing.

Away from writing, he is an avid basketball lover, a traveler, and a part-time degen.

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.