BlackRock is transferring deeper into tokenized funds, and the strikes are beginning to appear like a bid to deliver conventional ETFs onto blockchains.
Reports have disclosed that the agency’s tokenized cash market product, generally known as the BlackRock USD Institutional Digital Liquidity Fund or BUIDL, is already dwell on the Ethereum community and works with companies reminiscent of Securitize and BNY Mellon for switch agent and custody roles.
BlackRock Tokenized Fund Partners And Setup
According to filings and business stories, the BUIDL fund is backed by money, US Treasury payments, and repurchase agreements.
Transfer agent duties are being dealt with by Securitize whereas custody companies are supplied by BNY Mellon. Other infrastructure suppliers named in stories embrace Fireblocks, BitGo, Coinbase and Anchorage Digital.
The fund pays yields to token holders each 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 Toward Tokenized ETFs
Executives have been quoted as saying tokenization might scale far past a single fund. Reports have put a possible addressable market determine as excessive as $10 trillion if a broad array of belongings and ETFs are moved on-chain over time.
Industry trackers additionally present that the entire worth locked in tokenized real-world belongings handed $10 billion in latest months, an indication that the market is not purely experimental.
BlackRock’s exercise has prompted comparisons with different giant asset managers, reminiscent of Franklin Templeton, which have additionally launched tokenized choices.
Market Benefits And Practical Limits
Proponents say tokenized ETFs might permit fractional possession and round the clock transferability, and so they might pace settlement in some circumstances.
Reports say tokenization may additionally increase transparency since possession data might be seen instantly on the chain.
At the identical time, uncertainty stays over how tokenized ETF shares will work together with current market buildings reminiscent of APs and market makers, and whether or not on-chain buying and selling will probably be handled the identical as alternate buying and selling below US securities guidelines.
Regulatory And Custody Questions Remain
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 type out custody architectures and authorized wrappers that present enforceable claims on the underlying belongings to token holders.
Various jurisdictions may draw totally different conclusions, which might impede cross-border adoption or confine rollouts to particular person markets.
Bitcoin Fund Success Spurs Speculation Over Tokenized ETFs
BlackRock’s investigation into tokenized ETFs is a follow-up on the success of its Bitcoin fund, already attracting strong inflows and market curiosity.
The agency’s success in that division is now producing hypothesis that its subsequent transfer will probably be to take items of its multi-trillion-dollar ETF enterprise on-chain.
Should the transition happen, it will characterize one of many largest steps to this point by a worldwide asset supervisor in the direction of funding merchandise based mostly on blockchain.
Featured picture from Leonardo Munoz / VIEWpress, chart from TradingView
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