BlackRock Explores Tokenized ETF Shares for Global Access

Core Insights - BlackRock is exploring the conversion of its exchange-traded fund shares into blockchain-based tokens to enhance accessibility and mobility of its asset offerings [1] - The initiative builds on BlackRock's previous success with a tokenized money market fund that raised over two billion dollars [2] - Tokenized ETFs could enable trading beyond regular market hours and facilitate easier access for international investors [3] Group 1 - BlackRock has initiated testing of blockchain systems using JPMorgan's Kinexys platform to settle trades while integrating with traditional clearing systems [4] - The company faces challenges in aligning blockchain trading mechanics with existing Wall Street systems and ensuring compliance with current regulations [5] - BlackRock's efforts are part of a broader trend, with Nasdaq and other financial institutions also exploring tokenized financial products [6] Group 2 - CEO Larry Fink envisions a future where tokenization could impact nearly all financial assets, advocating for digital versions of traditional investments [7] - The potential success of tokenized ETFs could accelerate trade settlement processes and increase market flexibility for investors currently restricted from certain markets [8]