BlackRock is shifting deeper into tokenized funds, and the strikes are beginning to appear like a bid to carry conventional ETFs onto blockchains.
Reviews have disclosed that the agency’s tokenized cash market product, often known as the BlackRock USD Institutional Digital Liquidity Fund or BUIDL, is already reside on the Ethereum community and works with companies comparable to Securitize and BNY Mellon for switch agent and custody roles.
BlackRock Tokenized Fund Companions And Setup
In response to filings and business studies, the BUIDL fund is backed by money, US Treasury payments, and repurchase agreements.
Switch agent duties are being dealt with by Securitize whereas custody companies are supplied by BNY Mellon. Different infrastructure suppliers named in studies embrace Fireblocks, BitGo, Coinbase and Anchorage Digital.
The fund pays yields to token holders every day utilizing blockchain rails, and it’s being positioned as a bridge between basic cash-like devices and programmable token holdings.
JUST IN: BlackRock plans to tokenize ETFs following success with $BTC fund. pic.twitter.com/yQD0E4VjpX
— Whale Insider (@WhaleInsider) September 11, 2025
The Push Towards Tokenized ETFs
Executives have been quoted as saying tokenization might scale far past a single fund. Reviews have put a possible addressable market determine as excessive as $10 trillion if a broad array of property and ETFs are moved on-chain over time.
Trade trackers additionally present that the whole worth locked in tokenized real-world property handed $10 billion in latest months, an indication that the market is now not purely experimental.
BlackRock’s exercise has prompted comparisons with different massive asset managers, comparable to Franklin Templeton, which have additionally launched tokenized choices.
Market Advantages And Sensible Limits
Proponents say tokenized ETFs might enable fractional possession and round the clock transferability, they usually might velocity settlement in some instances.
Reviews say tokenization can also enhance transparency since possession data could be considered straight on the chain.
On the similar time, uncertainty stays over how tokenized ETF shares will work together with current market constructions comparable to APs and market makers, and whether or not on-chain buying and selling might be handled the identical as alternate buying and selling beneath US securities guidelines.
Regulatory And Custody Questions Stay
Regulators, custodians and auditors face laborious selections about authorized rights, disclosure and investor protections for tokenized securities.
On the premise of sector protection, companies proceed to kind out custody architectures and authorized wrappers that present enforceable claims on the underlying property to token holders.
Varied jurisdictions would possibly draw completely different conclusions, which might impede cross-border adoption or confine rollouts to particular person markets.
Bitcoin Fund Success Spurs Hypothesis Over Tokenized ETFs
BlackRock’s investigation into tokenized ETFs is a follow-up on the success of its Bitcoin fund, already attracting sturdy inflows and market curiosity.
The agency’s success in that division is now producing hypothesis that its subsequent transfer might be to take items of its multi-trillion-dollar ETF enterprise on-chain.
Ought to the transition happen, it will signify one of many largest steps to this point by a world asset supervisor in direction of funding merchandise primarily based on blockchain.
Featured picture from Leonardo Munoz / VIEWpress, chart from TradingView
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