BlackRock Explores Tokenized ETFs on Blockchain Pending Regulatory Approval

BlackRock is considering introducing exchange-traded funds (ETFs) on public blockchains, according to Bloomberg sources. The asset manager aims to tokenize funds linked to real-world assets like stocks, subject to regulatory approval.

The move follows BlackRock's earlier tokenization effort with the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), which has become a leading tokenized Treasury product, managing nearly $2.2 billion.

Tokenizing ETFs could allow shares to be traded as tokens on blockchain, enabling 24/7 trading and faster settlement times compared to traditional markets. This could enhance accessibility for investors in regions where ETFs are less available.

The initiative awaits regulatory clearance and reflects a broader trend of financial entities exploring blockchain solutions for various asset classes.