BlackRock is considering launching tokenized exchange-traded funds (ETFs), expanding its push into blockchain-based investment products following the success of its spot Bitcoin ETF and tokenized money market fund. Bloomberg reported the news on Sept. 11, citing sources familiar with the matter.
Expanding tokenization beyond BUIDL and Bitcoin ETF
The world’s largest asset manager is exploring how to issue ETFs tied to real-world assets—such as stocks—in tokenized form on blockchains. Tokenized ETFs would give investors the ability to trade outside Wall Street’s limited hours, provide easier access for international markets, and potentially unlock new collateral use cases within crypto networks.
BlackRock already has experience in this space. Its tokenized money market fund, BUIDL, launched in March 2024 and has grown to over $2 billion in assets, becoming one of the most successful tokenized funds to date. Meanwhile, the iShares Bitcoin Trust, BlackRock’s spot Bitcoin ETF, topped $10 billion in assets under management within a year, making it one of the fastest-growing ETFs in history.
In his 2025 investor letter, CEO Larry Fink reiterated his belief that tokenization represents the future of finance, stating that “every financial asset can be tokenized” to improve settlement speed and efficiency. BlackRock has also experimented with blockchain settlement by executing trades on JPMorgan’s Onyx platform, now rebranded as Kinexys.
Challenges and regulatory outlook
Despite growing momentum, tokenized ETFs still face hurdles. While blockchain assets can trade instantly and around the clock, traditional ETFs must settle through established clearinghouses. Bridging these two systems remains a challenge for regulators, custodians, and exchanges.
Even so, the regulatory environment is shifting. U.S. policymakers under the Trump administration have signaled openness to sandbox-style initiatives that allow firms to test blockchain-based market infrastructure.
Nasdaq has already filed with the SEC to permit tokenized stock trading on its exchange, which could become the first major test case for blockchain in U.S. equity markets.
Meanwhile, competitors like Franklin Templeton and Fidelity are developing tokenized funds, and trading platforms including Kraken and Robinhood have rolled out tokenized equities in overseas markets.
Currently, the tokenized asset market stands at roughly $29 billion, according to RWA tracker rwa.xyz—a small fraction of the $8 trillion U.S. ETF industry, but one that is rapidly growing.
