🏦 BlackRock Eyes Tokenized ETFs: Wall Street’s 24/7 Finance Experiment

BlackRock, the 10 trillion titan of asset management, is testing whether its next big product — ETFs — could live on-chain. If successful, this would bring round-the-clock trading, cheaper transactions, and global retail access to one of Wall Street’s favorite instruments. But regulators still hold the keys.

⚡ Quick Hits

• 💰 AUM (2025): 10T under BlackRock’s management
• 🪙 Tokenized funds market: > 7.4B
• 🏦 BlackRock’s pilot: BUIDL, world’s largest tokenized money market fund
• ⏰ Potential upside: 24/7 ETF trading + instant settlement
• ⚖️ Main hurdle: Regulation & securities law compliance

🔗 Why Tokenize ETFs Now?

Tokenization = converting real-world assets (RWAs) into blockchain-based tokens. For ETFs, this could mean:

• Faster settlement (no T+2 delays)
• Cheaper transactions (bye-bye intermediaries)
• Collateral utility in DeFi and TradFi markets
• Lower entry barriers for small, global investors

BlackRock isn’t starting from scratch. Its BUIDL tokenized money market fund already dominates the space. The ETF move is the logical next step — and a way to stay ahead of crypto-native upstarts.

⏰ Will ETFs Trade 24/7?

That’s the moonshot promise. Imagine ETFs trading like Bitcoin: anytime, anywhere.

• 🌍 Global access across time zones
• 🔄 ETF shares as collateral for loans or DeFi positions
• 💸 Micro-investing via fractional ownership without traditional brokerages

BlackRock itself admitted:

“We’re evaluating whether tokenizing our ETFs would enhance accessibility and utility for investors.”

🚧 The Roadblock: Regulation

Innovation meets red tape. Tokenized ETFs face big legal questions:

• Who governs the smart contracts?
• How are investor protections enforced?
• Do tokenized ETFs fit existing securities law?

Until regulators set the rules, ETFs may remain pilots, not products.

🌐 Bigger Picture: Tokenization Wave

This isn’t just a BlackRock story — it’s finance’s new operating system.

• Tokenized bonds, credit, and equities are already being tested.
• 7.4B+ tokenized funds market shows real demand.
• ETFs — a trillion-dollar industry — are ripe for disruption.

For BlackRock, this is both defensive (keeping up with DeFi) and opportunistic (capturing global flows into tokenized products).

🧩 Why It Matters

• For retail: ETF access without brokers, 24/7, even in emerging markets.
• For institutions: new collateral types, cross-market flexibility.
• For regulators: a test case for bringing trillion-dollar TradFi into a blockchain-native world.

The message is clear: finance is going 24/7. ETFs may be the next frontier — but whether it’s Wall Street or DeFi that dominates will depend on who adapts faster.

TL;DR

BlackRock is exploring tokenized ETFs after success with its BUIDL money market fund. If approved, ETFs could trade 24/7, cut costs, and boost accessibility worldwide. But regulatory uncertainty keeps the idea in the lab stage — for now. Still, the trajectory is clear: tokenization is transforming trillion-dollar markets into blockchain-native assets.