BlackRock Inc. is exploring how to give one of Wall Street’s biggest investment products a digital makeover.
The world’s largest asset manager is weighing ways to make exchange-traded funds available as tokens on the blockchain, according to people familiar with the matter, who declined to be identified citing confidential information. The New York-based firm is working on tokenizing funds tied to real-world assets, such as stocks, subject to regulatory considerations, the people said.
In 2024, BlackRock launched a tokenized money-market fund, known as BUIDL, which has grown to more than $2 billion and is popular on crypto platforms. It also follows the blockbuster debut of its spot Bitcoin ETF, which quickly became one of the most popular such funds in history. A BlackRock representative declined to comment.
Tokenization involves creating a digital version of a traditional asset that can move on blockchain systems. For ETFs, it could mean trading beyond Wall Street’s set hours, making US products easier to access abroad, and creating potential new uses as collateral in crypto networks.
That idea is drawing increased attention across the industry. Tokenized share classes of funds are seen as an early step toward a broader migration of markets onto blockchain, a shift proponents say could enable instant settlement, fractional shares, and more. Money-market funds from the likes of Franklin Templeton and BlackRock opened the door. Next, ETFs, already designed as flexible wrappers, may emerge as a proving ground for this transition.
BlackRock has been a big booster of digital assets. Beyond BUIDL, the firm has tested tokenized fund shares in trades on JPMorgan’s Onyx, now known as Kinexys, infrastructure and has positioned itself as an early adopter of digital-settlement models. The firm’s bullish posture is underscored by Chief Executive Officer Larry Fink, who has said every financial asset can be tokenized. He reiterated the view in his 2025 annual letter to investors.
