Nikolas Sargeant
BlackRock, the world's largest asset manager, is actively working on tokenizing funds tied to real-world assets, including stocks, according to sources familiar with the matter. The initiative represents a significant expansion of the firm's blockchain efforts beyond its current Treasury-focused tokenization program. The development comes as BlackRock seeks to leverage its success in digital assets following the breakthrough performance of its Bitcoin ETF and other crypto-related products.
The move would build upon BlackRock's existing tokenized Treasury product, which has grown to nearly $2.2 billion and become the world's largest tokenized Treasury fund. The tokenization of ETFs tied to real-world assets would be subject to regulatory considerations, highlighting the complex compliance landscape surrounding blockchain-based financial products. This cautious approach reflects the firm's commitment to working within existing regulatory frameworks while pushing innovation boundaries.
CEO Larry Fink has long advocated for widespread tokenization, stating in his 2025 annual letter to investors that "every financial asset can be tokenized". Fink envisions a future where all assets from stocks to bonds and real estate would be tradable online on blockchain platforms, potentially revolutionizing financial ownership and investing. This vision aligns with BlackRock's strategy to position itself at the forefront of digital asset transformation.
BlackRock's digital assets under management reached $79.6 billion as of the second quarter of 2025, representing just 1% of its $12.5 trillion total but showing rapid growth momentum. The tokenized money fund market, excluding private credit, currently stands at $7.4 billion as of September 11, indicating substantial room for expansion. The firm's exploration of ETF tokenization could tap into this growing market while offering broader asset exposure through established trading mechanics well-suited for blockchain deployment.
BlackRock's Proven Crypto Track Record
BlackRock has established itself as a dominant force in the cryptocurrency space through record-breaking performance across multiple digital asset products. The firm's spot Bitcoin ETF (IBIT) became the fastest ETF to reach $70 billion in assets, achieving this milestone in just 341 days - a feat that dramatically outpaced the previous record holder. This performance was five times faster than GLD, the gold-based ETF that took 1,691 days to reach the same threshold, demonstrating unprecedented institutional appetite for Bitcoin exposure through traditional investment vehicles.
Beyond Bitcoin ETFs, BlackRock has expanded its tokenization efforts across multiple blockchain networks. The company's BUIDL fund recently launched on Solana through Securitize, bringing institutional-grade yield to the high-throughput blockchain. Securitize noted that Solana's high throughput, low costs, and scalability make it an ideal blockchain to support institutional-grade real-world assets, highlighting BlackRock's strategic approach to selecting optimal blockchain infrastructure for different asset classes. This multi-chain strategy positions BlackRock to capture opportunities across various blockchain ecosystems while serving diverse institutional client needs.
