BlackRock is examining how exchange-traded funds (ETFs) could be issued in tokenised form, Bloomberg reported, citing people familiar with the matter. The move would extend the firm’s experiments with blockchain-based funds, which so far include its BUIDL tokenised money-market fund launched in 2024. That fund has already surpassed USD 2 billion in assets and is widely used on crypto platforms. BlackRock declined to comment to Bloomberg.
The world’s largest asset manager has already tested tokenised fund shares on JPMorgan’s Onyx, now operating as Kinexys , infrastructure. ETFs are now being considered as a next step, given their flexible wrapper and global investor base. Chief Executive Larry Fink has repeatedly stated his view that all financial assets can be tokenised, a point he underlined again in his 2025 annual letter to investors.
Infrastructure challenges
For post-trade actors, the friction lies in aligning tokenised instruments with today’s ETF settlement cycle. ETFs currently pass through clearinghouses, while tokenised assets transfer instantly and continuously on blockchain rails. Reconciling these two models raises questions around custody, collateral management, and how clearing responsibilities are structured.
Franklin Templeton has also launched tokenised money-market funds, while Nasdaq has sought regulatory approval to enable trading of tokenised stocks. Meanwhile, exchanges like Kraken and Robinhood offer tokenised stocks to its customer in the EU and startups pilot offer similar services in controlled settings.
Growing interest
The overall tokenised asset market remains limited, about USD 28 billion, according to rwa.xyz, compared with the multi-trillion-dollar ETF sector. Still, BlackRock’s exploration suggests ETFs could become an important proving ground for blockchain-based market infrastructure, with potential knock-on effects for clearing, settlement, and collateral flows.
