Report Suggests BlackRock Weighs Blockchain-Enabled Tokenized ETFs Beyond Treasury Holdings

BlackRock Considers Tokenized ETFs in Push Beyond Treasuries

BlackRock, the world’s largest asset manager, is exploring ways to put exchange-traded funds (ETFs) on blockchain, sources told Bloomberg. The firm is reportedly evaluating tokenizing funds tied to real-world assets, including equities, though any launch would require regulatory approval.

The move follows BlackRock’s initial tokenization experiment last year with the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). The fund, backed by short-term U.S. Treasuries, repurchase agreements, and cash, has quickly become the largest tokenized Treasury product globally, managing around $2.2 billion.

Tokenizing ETFs would mark a significant expansion of blockchain-based financial products. In this model, ETF shares — traditionally traded on exchanges during market hours — could be issued and transacted as digital tokens on-chain.

Supporters highlight several potential benefits: continuous 24/7 trading, near-instant settlement compared with the typical two-day process, and improved access for investors in regions where ETFs are less available.

The products are still subject to regulatory approval. BlackRock’s exploration reflects a broader trend in finance, as banks, fintech firms, and asset managers increasingly experiment with blockchain for bonds, private credit, and mainstream equity funds.