BlackRock is reportedly considering the tokenization of exchange-traded funds (ETFs) on public blockchains, a move that could transform traditional trading and settlement of financial assets.
Key Points:
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The proposal comes after BlackRock’s recent success with a $2.2 billion tokenized money market fund.
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Tokenizing ETFs could allow trading 24/7, speed up settlements, and give investors worldwide easier access to these financial products.
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The plan would depend heavily on regulatory approvals.
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Last year, BlackRock launched its USD Institutional Digital Liquidity Fund, which has become the largest tokenized Treasury product globally.
Implications:
If realized, this shift could reduce settlement times from several days to just minutes, increase visibility into ETF markets, and make investing in ETFs more accessible in regions where traditional fund infrastructures are limited. Regulatory bodies will play a key role in determining how—and if—this model can scale globally.
Source: DeCrypto News – BlackRock Considers Tokenizing ETFs on the Blockchain