As Bloomberg News reported on Sept. 11, the firm weighs creating blockchain-based versions of ETFs tied to real-world assets (RWA), including stocks, according to sources familiar with the confidential planning.
Tokenized ETF shares would enable trading beyond Wall Street’s standard hours, improve international access to US products, and create new collateral opportunities within crypto networks.
However, the report noted that current challenges include reconciling ETF settlement through Wall Street clearinghouses with blockchain’s instant, 24-hour trading capabilities. These challenges create technical and regulatory questions for custodians managing the transition between traditional and digital infrastructure.
BlackRock’s exploration reflects mainstream finance’s evaluation of blockchain technology for enhancing market infrastructure, including improvements in collateral flows and settlement speed.
The firm’s digital asset advocacy, combined with regulatory shifts, positions tokenized ETFs as another bridge between traditional and decentralized finance systems.