- BlackRock plans to tokenize funds holding real-world assets, including stocks, on a blockchain platform.
- The firm began offering a blockchain-based money market fund, BUIDL, in 2024, which surpassed $2 billion in assets.
- Tokenization enables digitizing assets like stocks and U.S. Treasuries, allowing for 24/7 trading and fractional ownership.
- BlackRock is also considering launching tradable ETF tokens on blockchain, potentially expanding investment access and trading hours.
- Other industry players, including Nasdaq and Coinbase, are moving toward offering tokenized stocks, though these are not yet available for U.S. trading.
BlackRock, the world’s largest asset manager, is preparing to launch blockchain-based funds tied to real-world assets such as stocks, according to sources cited by Bloomberg. The New York company is developing tokenized investment products, pending regulatory approval.
The move follows BlackRock’s 2024 launch of BUIDL, a tokenized money market fund that has grown to more than $2 billion in assets and remains popular across crypto-focused investment platforms. The company’s spot Bitcoin ETF, introduced last year, also became one of the top performing exchange-traded funds in the market.
Tokenization involves using blockchain technology to convert assets like stocks, U.S. Treasuries, or real estate into digital tokens that can be traded. These tokens make assets more accessible, allow them to be divided into fractions, and support trading at any time, instead of only during traditional market hours.
BlackRock is also examining the possibility of issuing exchange-traded fund (ETF) tokens on blockchain. If implemented, this could make the firm’s ETFs, which currently trade only during limited weekday hours, available for trading around the clock and to a broader range of investors.
Industry moves toward asset tokenization are supported by other major players. Nasdaq has filed a proposal with the Securities and Exchange Commission to list tokenized equities and exchange-traded products on its main platform. The approval would let traders handle tokenized stocks alongside traditional ones. Coinbase, a leading crypto exchange, has also announced plans to provide tokenized stocks and prediction markets for U.S. users in the near future.
Currently, tokenized equities are not permitted for public trading in the United States. However, several financial companies are testing these products globally, and if BlackRock proceeds as planned, it would become the largest asset manager involved in this area.
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