Report: BlackRock Considers Blockchain-Based Tokenized ETFs to Expand Past Treasury Assets

BlackRock Considers Tokenizing ETFs as It Moves Beyond Treasuries

BlackRock, the world’s largest asset manager, is exploring ways to bring exchange-traded funds (ETFs) onto public blockchains, according to sources familiar with the matter who spoke to Bloomberg. The firm is reportedly weighing tokenization of funds linked to real-world assets such as stocks, though any rollout would depend on regulatory approval.

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

Tokenizing ETFs would represent a deeper push into blockchain-based financial products. In this model, ETF shares, normally traded on traditional exchanges during market hours, could instead be issued and transacted as on-chain tokens.

Advocates of the approach highlight potential benefits, including 24/7 trading, near-instant settlement compared with the typical two-day process in conventional markets, and improved access for investors in regions where ETFs are less accessible.

Any launch remains contingent on regulatory approval. BlackRock’s exploration reflects a broader trend, as financial institutions increasingly test blockchain infrastructure for bonds, private credit, and now mainstream equity funds.