BlackRock Research ETF Tokenization Faces Technical and Regulatory Challenges

According to Shenchao TechFlow, BlackRock is studying to tokenize ETFs linked to real-world assets such as stocks. Analysts believe that this transformation faces major technical and regulatory challenges. Currently ETFs are settled through Wall Street Clearing House, while blockchain transactions are instant and 24/7, coordinating these systems to create complex problems for regulators and custodians. However, the regulatory environment in the Trump era is becoming more relaxed. Blockchain migration can realize functions such as instant settlement and share splitting. ETF tokenization will bring three major changes: extended transaction time, global access and new mortgage uses.