BlackRock Pushes Tokenization Beyond Bitcoin
BlackRock, the world’s largest asset manager, is exploring how to tokenize exchange-traded funds (ETFs) and real-world assets (RWAs), according to a Bloomberg report. The move represents the firm’s most ambitious step yet in its blockchain strategy, aiming to make traditional funds tradeable around the clock.
The initiative builds on earlier milestones, including the iShares Bitcoin Trust (IBIT), which became the most successful ETF debut in U.S. history, and BUIDL, a tokenized money-market fund launched in 2024 that now manages over $2 billion.
Testing Tokenized Trades With JPMorgan
To explore how tokenized ETFs could function, BlackRock has been testing digital fund shares using JPMorgan’s blockchain network, previously known as Onyx and now rebranded as Kinexys. These trials focused on real-time digital settlement infrastructure, a critical piece for assets that traditionally move through centralized clearinghouses like DTCC.
Tokenizing ETFs could allow trading outside U.S. market hours, while also making tokenized shares eligible as collateral on crypto platforms. Industry leaders see this as a stepping stone toward a fully blockchain-based market, with fractional ownership and instant settlement as standard features.
However, regulators face big questions about custody, reconciliation, and legal oversight. Today’s financial infrastructure wasn’t designed for nonstop blockchain settlement, and adapting it may prove complex.
Industry Momentum Builds Around Tokenization
The broader tokenized asset market is still small, about $28 billion, but momentum is growing. Companies like Securitize and Ondo have already moved billions in U.S. Treasuries on-chain, while Citigroup and BlackRock are digitizing entire funds to attract crypto-native investors.
Meanwhile, Nasdaq has asked regulators for approval to list tokenized stock versions, a move that would embed blockchain into the core of U.S. equity markets for the first time.
McKinsey projects the global RWA tokenization market could reach $2 trillion by 2030, with Treasuries leading the way due to their simpler structure. But bringing public equities to blockchain presents much harder challenges, including shareholder votes, dividends, mergers, and corporate governance.
Trump Administration Opens Testing Environment
The regulatory climate has also shifted. Under President Donald Trump, U.S. policymakers have become more open to controlled blockchain experimentation. Programs now allow firms to test tokenized markets in safe settings, preventing systemic shocks while pushing innovation forward.
With Trump back in the White House in 2025, that regulatory window for crypto-focused pilots remains open. This environment is crucial for BlackRock, as it balances its global scale with the experimental nature of blockchain-based markets.
A Bigger Leap Into the Future of Finance
For now, tokenized ETFs remain a work in progress, but BlackRock’s moves signal how far traditional finance is willing to go. If successful, ETFs could trade 24/7, settle instantly, and plug into the decentralized finance ecosystem as usable collateral.
Yet, the leap from bonds and Treasuries to public equities is enormous. As one analyst put it, this is “the real infrastructure of capitalism”, and integrating it with blockchain will take new tools, new rules, and patience. BlackRock, however, appears determined to lead the charge.
