Olga Kharif, editor at Bloomberg Media, has written an article discussing BlackRock, the worlds largest asset manager exploring a revolutionary new use for blockchain and tokenization. BlackRock is exploring the possibility of tokenizing ETF's and listing them on the blockchain. This idea would revolutionize the way that exchange traded funds are traded, moving them into the blockchain era. The benefits of tokenizing assets would allow for easier access to markets, around the clock trading, and creating new uses for collateral across the crypto industry.
BlackRock has been a leader in tokenizing assets, and sees strong potential in the future of the marketplace. In 2024 Blackrock launched BUIDL, a money-market fund which has grown to over $2 billion in value. BlackRock also released a spot Bitcoin ETF, which has become one of the most popular funds of its kind.
There are a lot of regulatory issues that need to be resolved prior to the legalization and broad based acceptance of tokenizing assets. Currently, ETF's settle through traditional clearinghouses whereas Tokenized assets move instantly. Compliance, custody and settlement speed of deals are some of the many problems. BlackRock is moving forward with this new business function because the Trump administration has showed a willingness to test blockchain situated markets in controlled circumstances.
https://www.bloomberg.com/news/articles/2025-09-13/warner-bros-brings-big-win-for-fallen-angel-debt-credit-weekly?srnd=phx-markets
I am not surprised by the regulatory issues. However, I would be very curious to see what else will happen with the tokenization of ETFs.
ReplyDeleteTokenizing ETFs could make markets far more efficient and accessible, but could it also raises big questions about regulation and security?
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