tl;dr
BlackRock is exploring the tokenization of exchange-traded fund (ETF) shares using blockchain technology, aiming to revolutionize how investors access and trade traditional financial products. The firm has previously tested tokenized funds, including a money-market fund launched in 2024, and CEO L...
BlackRock, the $10 trillion asset manager, is eyeing a bold next step in its digital transformation: tokenizing exchange-traded fund (ETF) shares. Bloomberg reports that the firm is quietly exploring blockchain-based versions of ETFs tied to real-world assets like stocks, a move that could redefine how investors access and trade traditional financial products. This isn’t just a footnote in BlackRock’s strategy—it’s a calculated leap into the future of finance.
The idea isn’t entirely new. BlackRock already tested the waters with its $2.2 billion BUIDL tokenized money-market fund, launched in March 2024, just two months after its Bitcoin ETF debut. CEO Larry Fink has long championed tokenization, declaring in his 2025 letter that *“every financial asset can be tokenized.”* Now, the firm is pushing further, aiming to turn ETFs—those ubiquitous bundles of stocks and bonds—into digital tokens.
Why? Tokenizing ETF shares could unlock a host of benefits. Imagine trading US-based ETFs anytime, anywhere, beyond Wall Street’s 9-to-5 hours. It could also democratize access for international investors, who might otherwise face hurdles navigating US markets. Plus, tokenized ETFs could act as collateral in crypto networks, bridging the gap between traditional finance and decentralized systems.
This isn’t happening in a vacuum. Just days after Bloomberg’s report, Nasdaq filed with the SEC to trade tokenized stocks and ETFs on its platform—a sign that major exchanges are aligning with BlackRock’s vision. Meanwhile, BlackRock has already tested tokenized fund shares using JPMorgan’s Kinexys infrastructure, positioning itself as a pioneer in digital settlement models.
The numbers back this momentum. Tokenized money-market funds, like those from BlackRock and Franklin Templeton, have already carved out a $7.4 billion market, making them the largest category of tokenized real-world assets (RWA) outside private credit. ETFs, with their broad asset exposure and flexible trading mechanics, are a natural next step for blockchain deployment. Platforms like Kraken, Robinhood, and Coinbase are even experimenting with tokenized stocks, hinting at a broader shift.
But challenges loom. ETFs typically rely on Wall Street clearinghouses for settlement—a process that can take days. Blockchain, by contrast, offers instant, 24/7 trading. Reconciling these systems is no small feat, raising technical and regulatory questions for custodians managing the transition between traditional and digital infrastructure.
Still, BlackRock’s push underscores a growing consensus: blockchain isn’t just for crypto anymore. It’s a tool to revamp market infrastructure, speeding up settlements and improving collateral flows. With Fink’s advocacy and evolving regulatory frameworks, tokenized ETFs could become the next bridge between traditional finance and the decentralized world.
The question isn’t whether this will happen—it’s how fast. And for investors, the answer might just be a click away.