[Bloomberg] BlackRock is working on tokenizing funds related to real-world assets

According to Billion Network, BlackRock, the world's largest asset management company, has been making waves in the digital asset field, and the company is considering launching its exchange-traded fund online, according to Bloomberg. This could include tokenizing funds related to "real-world assets" including stocks, Bloomberg senior cryptocurrency journalist Olga Kharif wrote on Thursday, citing people familiar with the matter. Kharif noted that the move would be subject to “regulatory considerations.” The New York-based company offers a variety of cryptocurrency-related products, including the largest ETFs tracking Bitcoin and Ethereum, iShares Bitcoin Trust and iShares Ethereum Trust, with cumulative inflows of $55.00 billion and $12.700 billion, respectively. Both funds reached $10.00 billion in a year or less, two of the only three products to reach this milestone. Less well known, BlackRock also offers “theme” funds such as the iShares Blockchain and Tech ETF, which invests in cryptocurrencies-related company indexes but does not invest directly in tokens. The move comes as Wall Street's interest in tokenization surges. For example, earlier this week, Fidelity quietly launched a blockchain-based version of the Treasury money market fund, which is now associated with the Fidelity Digital Interest Token. Meanwhile, Nasdaq is seeking SEC approval to trade tokenized securities as well as traditional stocks. It is worth noting that BlackRock has direct experience in products on the distribution chain. The asset management company offers the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), which became the first tokenized fund to break the $1.00 billion mark in March, currently managing more than $2.00 billion, according to RWA.xyz. Despite the recent increase in interest, tokenized stocks, including stocks and ETFs, remain an emerging market. Several major companies, including Robinhood and Kraken, are offering on-chain versions of popular U.S. stocks such as TSLA and APPL. However, according to RWA, the assets are worth less than $500 million in circulation. BlackRock CEO Larry Fink has repeatedly stated that he predicts that all financial assets will be tokenized. The company reached $50.00 billion in the first quarter of 2025, with net inflows of $3.00 billion in the quarter. That said, Bloomberg ETF analyst Eric Balchunas said on X that while tokenization could bring some minor improvements to the “TradFi’s backend (pipeline)”, he still suspects that this trend will dramatically change consumers’ appetites. He wrote: "What the hype suggests is to have actual investors sell $VOO et al and buy tokens, just like ETFs steal money from [mutual funds]. I just don't understand. I don't see the added value of consumer conversions, like I don't see DI, and I'm completely right about that." Balchunas added in a follow-up comment: "I think it makes sense to tokenize things for people on chains, just like ETFs make it easier for brokers to get things on chains. But people on chains make too small a share of global funds, which is why hype sometimes feels too heavy for the impact (at least in the medium term)."