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BlackRock Explores Tokenized ETFs on Public Blockchains

Regulatory clearance alongside legacy system integration remains the gating factor.

Overview

  • Bloomberg reports BlackRock is evaluating on‑chain versions of ETFs tied to real‑world assets such as stocks, with any rollout contingent on approvals.
  • Early tests have used JPMorgan’s Kinexys/Onyx infrastructure to trial settlement and custody workflows for tokenized fund shares.
  • Potential benefits cited include 24/7 trading, near‑instant settlement, broader global access, and use of ETF tokens as collateral in DeFi.
  • The push builds on BlackRock’s BUIDL tokenized money‑market fund, now about $2.2 billion, and momentum from its spot crypto ETFs.
  • Industry activity is accelerating as Nasdaq seeks SEC permission to trade tokenized stocks and ETFs, yet tokenized assets total roughly $29 billion versus a $8 trillion U.S. ETF market.