BlackRock Weighs Tokenized ETFs on Blockchain in Push Beyond Treasuries: Report

Core Insights - BlackRock is exploring the potential of bringing exchange-traded funds (ETFs) onto public blockchains, focusing on tokenizing funds linked to real-world assets like stocks, contingent on regulatory approval [1][5] - The firm previously launched the BlackRock USD Institutional Digital Liquidity Fund, which has become the largest tokenized Treasury product, managing nearly $2.2 billion [2] - Tokenizing ETFs would allow for trading around the clock and faster settlement times, enhancing accessibility for investors [3][4] Group 1 - BlackRock is considering the tokenization of ETFs, which would involve issuing and transacting fund shares as tokens on a blockchain [3] - The exploration of tokenized ETFs aligns with a broader trend in finance, where various financial institutions are testing blockchain applications for different asset classes [5] Group 2 - The BlackRock USD Institutional Digital Liquidity Fund, known as BUIDL, is backed by short-term U.S. Treasuries and has quickly grown to manage nearly $2.2 billion [2] - Proponents of tokenized ETFs argue that they could provide significant benefits, including 24/7 trading and quicker settlement times compared to traditional finance [4]