BlackRock Explores Tokenized ETFs on Blockchain in Expansion Beyond Treasuries

BlackRock is reportedly advancing its blockchain ambitions by exploring the tokenization of exchange-traded funds (ETFs). According to sources familiar with the matter, the asset management giant is evaluating how to bring ETFs tied to real-world assets like stocks onto public blockchains. Regulatory approval remains a prerequisite for any rollout.

The move follows BlackRock's successful debut in tokenization with the BUIDL fund, a $2.2 billion tokenized Treasury product launched last year. Tokenizing ETFs WOULD mark a significant escalation in blockchain-based financial innovation, enabling 24/7 trading and near-instant settlement—advantages that could democratize access for underserved markets.

Proponents highlight the transformative potential: blockchain-native ETFs could bypass traditional trading hours and two-day settlement delays. The initiative reflects broader institutional momentum toward merging legacy finance with decentralized infrastructure.