BlackRock, the world's largest asset management firm, continues to develop its plans to tokenize investment products based on blockchain technology.
What is ETF Tokenization?
Tokenization involves creating digital versions of traditional assets that can be traded on the blockchain. BlackRock is considering tokenizing exchange-traded funds (ETFs), which could lead to the creation of new investment instruments.
Opportunities of Tokenized ETFs
Tokenized ETFs could offer a range of advantages, including 24/7 trading, easy access for international investors, and the ability to use them as collateral in crypto networks.
BlackRock's Previous Experience in Asset Tokenization
BlackRock has already had success in this area with its tokenized money market fund, BUIDL, launched in 2024, which raised $2 billion in capital. Additionally, the company achieved significant success with its Bitcoin ETF, becoming one of the fastest-growing funds in history.
BlackRock's expansion plans may signal a new era for investment products, providing accessibility and liquidity through blockchain.
