BlackRock is exploring ways to bring exchange-traded funds (ETFs) onto public blockchains, according to sources cited by Bloomberg. The asset manager is considering tokenizing funds tied to real-world assets such as stocks, though any launch would depend on regulatory approval.
This follows BlackRock’s first tokenization experiment last year with the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), backed by short-term U.S. Treasuries, repurchase agreements, and cash. BUIDL has quickly become the world’s largest tokenized Treasury product, managing nearly $2.2 billion.
Tokenizing ETFs would mark a deeper move into blockchain-based financial products. In practice, it would allow fund shares — traditionally traded on stock exchanges during market hours — to be issued and transacted as tokens on-chain.
Supporters argue that tokenized ETFs could trade 24/7, with settlement times reduced from two business days to just minutes. Investors in markets where ETFs are less accessible could gain exposure via blockchain infrastructure.
The products are awaiting regulatory clearance. BlackRock’s exploration reflects a broader trend in finance, as banks, fintechs, and asset managers test blockchain rails for bonds, private credit, and now mainstream equity funds.
Fundfa View
BlackRock’s move toward tokenized ETFs signals growing institutional interest in blockchain-based investment products. If approved, such offerings could redefine ETF accessibility, liquidity, and settlement efficiency, potentially setting a precedent for the broader asset management industry.