BlackRock’s BUIDL Fund Success Sparks Major Tokenized ETF Exploration
Wall Street's sleeping giant just woke up to blockchain—and it's hungry.
BlackRock's $1.2 billion BUIDL fund didn't just meet expectations; it shattered them, proving institutional appetite for tokenized assets isn't just theoretical—it's voracious. Now the world's largest asset manager is pushing deeper into the tokenization frontier, exploring how to bring its entire ETF suite on-chain.
The Mechanics Behind the Move
Tokenization converts traditional assets into digital tokens on a blockchain, enabling 24/7 trading, instant settlement, and fractional ownership. For BlackRock, this isn't just about keeping up with tech trends—it's about fundamentally redefining liquidity and accessibility in markets that haven't changed in decades.
Why This Isn't Just Another Crypto Experiment
Unlike speculative crypto projects, BlackRock's approach leverages blockchain for efficiency, not hype. The BUIDL fund's success demonstrated that institutions want Treasury yields and real-world assets—they just want them on better infrastructure. Tokenized ETFs could slash settlement times from days to seconds and reduce counterparty risk—something even traditional finance veterans can't ignore.
What's Next? Expect Resistance—Then Adoption
Regulatory hurdles remain, and legacy systems won't vanish overnight. But when BlackRock moves, markets listen. The same firm that normalized Bitcoin ETFs is now positioning to normalize tokenized everything—because nothing gets regulators comfortable like trillions in assets under management. Funny how 'disruption' suddenly becomes 'innovation' when the right players get involved.
One thing's clear: the future of finance isn't just digital—it's tokenized. And it's coming faster than anyone expected.
BlackRock eyes tokenized ETF launch
Trillion-dollar asset manager BlackRock is exploring ways to tokenize ETFs that track stocks and other real-world assets, according to a Bloomberg report on Tuesday, citing unnamed sources familiar with the matter.
Although subject to regulatory approval, the initiative would unlock a new source of liquidity for the products, allow them to trade 24/7 and boost global accessibility. It could also drive the integration of DeFi and TradFi, enabling the formation of new capital markets within the crypto ecosystem.
Following the steps of Franklin Templeton's FOBXX, BlackRock delved into the tokenization trend in 2024 through the launch of its tokenized money market fund, BUIDL, shortly after debuting its spot Bitcoin ETF. Developed in partnership with Securitize, BUIDL has grown to a market capitalization of over $2.2 billion in less than a year and a half, according to CoinGecko data.
BlackRock's CEO, Larry Fink, has previously said that "every asset can be tokenized", adding that tokenization could revolutionize the financial market.
The firm is also looking to build on its success with crypto ETFs as it manages two of the only three crypto ETFs — iShares Bitcoin Trust (IBIT) and iShares ethereum Trust (ETHA) — to have reached $10 billion in assets under management (AUM).
The MOVE follows strong regulatory momentum surrounding the crypto industry. The Securities & Exchange Commission (SEC) Chair Paul Atkins stated during his announcement of the agency's Project Crypto initiative that he aims to bring the US financial market on-chain.
Likewise, Nasdaq has filed with the SEC to list and trade tokenized stocks and exchange-traded products on its platform. The proposal includes allowing trading of tokenized versions of securities alongside their traditional forms.
Several crypto platforms are also actively rolling out or planning to launch tokenized stocks, including Kraken, Robinhood, Bybit, Coinbase and Gemini.
