BlackRock, the world’s largest asset manager, is venturing into the blockchain realm by exploring the tokenization of exchange-traded funds (ETFs) tied to real-world assets. This move comes as the company looks to leverage the success of its previous digital asset ventures, including the launch of its tokenized money-market fund, BUIDL, and its spot Bitcoin ETF.
Tokenization involves creating blockchain-based versions of traditional financial assets like ETFs, offering various benefits such as extended trading hours, easier international access, and enhanced collateral opportunities within crypto networks. Advocates believe that tokenization can streamline market structures, provide fractional ownership, and enable instant settlement.
BlackRock has been a pioneer in this space, having tested tokenized fund shares on JPMorgan’s blockchain platform and expressing its belief that all financial assets can eventually be tokenized. CEO Larry Fink has reiterated the transformative potential of tokenization in financial markets, paving the way for the company to tap into the vast $400 trillion traditional finance market.
Recent research indicates significant growth in the tokenized real-world asset (RWA) market, with a focus on private credit and U.S. Treasuries. The market has soared to $26.5 billion in 2025, with projections suggesting it could reach $16 trillion by 2030. Traditional banks and blockchain-native firms are increasingly exploring RWA products for yield generation and liquidity management.
Institutions are also embracing tokenization, with platforms like Ondo Global Markets and partnerships like SBI Holdings and Startale developing avenues for tokenized stocks and RWAs. Despite regulatory and custodial challenges, initiatives like Nasdaq’s request to list tokenized stocks indicate a growing acceptance of blockchain-based markets in the U.S. equities landscape.
BlackRock’s digital asset segment has seen significant growth, with $79.6 billion in assets under management as of July 2025. Digital products accounted for a sizable portion of the firm’s ETF inflows, generating new streams of yield from crypto assets. The company’s flagship spot Bitcoin ETF, IBIT, has garnered substantial inflows, solidifying its position as a key player in the digital asset space.
Overall, BlackRock’s foray into the tokenization of ETFs signals a broader shift towards digital asset adoption in the financial industry. As the company continues to navigate regulatory complexities and market dynamics, it stands poised to capitalize on the opportunities presented by the tokenization of real-world assets.