BlackRock, the American front-running asset management company with over $16 trillion under their umbrella, is looking to tokenize exchange-traded funds (ETFs) on-chain. This was disclosed in a fresh report by Reuters, as people familiar with the matter explained BlackRock’s Real World Asset (RWA) tokenization push.
BlackRock To Unlock 24/7 Trading For BTC & RWA ETFs
This includes traditional stocks, real estate, and digital-asset based ETFs, which could be traded outside the normal business hours if implemented on the blockchain. Simply put, tokenization is a process of making a digital version that mirrors a traditional asset. According to BlackRock’s CEO Larry Fink, “every financial asset can be tokenized”.
Wall Street’s behemoths are looking at this broader migration of markets to digital space after the success of their Bitcoin ETF & the BUIDL money-market fund. According to Farside Investors, BlackRock’s Bitcoin ETF currently holds the majority of all inflows, adding another $366 million on September 11, 2025.
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Notably, the New York headquartered investment enterprise holds the top position on Ether ETFs as well, even though the altcoin-based ETF saw multi-million dollar outflows this September. Meanwhile, the blockchain-venture focused BUIDL MMF became popular across crypto platforms as a liquidity provider in 2024.
On The Flipside
- Merging of ETFs with blockchain-based tokens raises extra questions for both regulators and investors, making it hard to implement.
- BlackRock’s current tokenized market cap dwells around $28 billion, a drop in the ocean in comparison to the $16T assets under management (AUM).
Why This Matters
Converting best-performing ETFs with high exposure to equities and bonds enables both crypto & stock investors to trade around the clock without being constrained by business hours.
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BlackRock aims to tokenize ETFs, including its iShares Bitcoin Trust (IBIT) with $60 billion in AUM and Real World Asset (RWA) ETFs, using blockchain technology. This builds on the $2 billion tokenized BUIDL fund, enhancing accessibility and efficiency.
Tokenization enables continuous trading beyond traditional market hours, offering global access, instant settlements, and increased liquidity. This aligns with BlackRock’s vision to integrate crypto and traditional finance, leveraging IBIT’s success.
Following IBIT’s $60 billion AUM milestone, BlackRock views RWA ETFs (e.g., tokenized stocks) as the next frontier. The RWA market could reach $16 trillion by 2030, with tokenization enabling DeFi applications and fractional ownership.
Tokenized ETFs offer 24/7 trading, lower costs, fractional shares, and DeFi compatibility. They promise enhanced liquidity and global reach, with BlackRock testing tokenized trades via JPMorgan’s Kinexys platform.
Regulatory approval from the SEC, custody frameworks, and settlement integration pose hurdles. The RWA market ($28 billion) lags behind the $8 trillion ETF sector, requiring policy advancements for full 24/7 trading adoption.
