BlackRock Drives Blockchain's Next Financial Revolution

Bitcoin surged above $115,000 on Thursday as options expirations and institutional moves continued to fuel market momentum. The cryptocurrency’s latest price action follows the recent launch of multiple spot Bitcoin ETFs, including BlackRock’s IBIT, which has seen rapid inflows. The price spike came against a backdrop of growing institutional participation, regulatory clarity, and broader adoption of tokenized assets, with major players like BlackRock pushing for further integration of blockchain technology into traditional finance.

BlackRock, the world’s largest asset manager, is now exploring ways to tokenize exchange-traded funds (ETFs) and make them available as blockchain-based assets. The firm is investigating the tokenization of ETFs tied to real-world assets (RWAs), such as stocks, subject to regulatory approval. This move builds on the success of BlackRock’s tokenized money-market fund, BUIDL, which has attracted over $2 billion in assets since its 2024 launch. Tokenization, in this context, refers to the process of converting traditional assets into digital tokens on a blockchain, allowing for 24/7 trading, increased liquidity, and potential use as collateral in crypto networks.

The initiative is part of a broader industry shift toward blockchain-based financial infrastructure. Tokenized ETFs could offer faster settlement times, global accessibility, and the potential to bridge traditional and digital markets. BlackRock’s Chief Executive Officer, Larry Fink, has been a vocal proponent of tokenization, stating in his 2025 annual letter to investors that every financial asset can be tokenized. The firm has already tested tokenized fund shares on JPMorgan’s blockchain platform, Kinexys, and is positioning itself as a leader in this emerging space.

The tokenization of real-world assets is gaining traction across the financial sector. According to the Skynet RWA Security Report, the tokenized RWA market could reach $16 trillion by 2030, with U.S. Treasuries driving much of the near-term growth. Animoca Brands reported that the RWA tokenization market has already reached $26.5 billion in 2025, a 70% increase from the beginning of the year. The growth is largely concentrated in private credit and U.S. Treasuries, which together account for nearly 90% of tokenized value.

BlackRock’s foray into tokenized ETFs aligns with broader market developments, including Nasdaq’s recent proposal to allow tokenized equities and exchange-traded products (ETPs) to be traded on its main market. This move could mark the first major step toward incorporating blockchain technology into the core of U.S. equity markets. Meanwhile, crypto-focused platforms like Kraken and Robinhood already offer tokenized stocks overseas, signaling an expanding ecosystem for digital assets.

The market for tokenized assets remains relatively small, at around $28 billion, but the growing interest from major financial institutions suggests a significant transformation is underway. BlackRock’s exploration of tokenized ETFs underscores how traditional finance is beginning to test the potential of blockchain to rewire market infrastructure, from collateral flows to settlement speed. As regulatory frameworks evolve and institutional players continue to innovate, the convergence of traditional and digital markets appears increasingly inevitable.