BlackRock Inc., the largest asset manager globally, is reportedly exploring the tokenization of its exchange-traded funds (ETFs). This initiative aligns with a broader trend on Wall Street aimed at integrating real-world assets into blockchain technology. Sources indicated that this innovative move would require regulatory approval.
Tokenization could enable fund shares, which are traditionally traded on stock exchanges only during market hours, to be issued as tokens on blockchain networks. BlackRock currently offers a diverse range of ETFs under its iShares brand, including well-known options like the iShares MSCI Emerging Markets ETF, iShares Bitcoin Trust ETF, and iShares Core S&P 500 ETF.
While BlackRock has not publicly commented on the matter, its efforts in the realm of tokenization are not entirely new. Last year, the firm launched the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), allowing select investors to earn yields in U.S. dollars through a digital asset fund. Initially based on the Ethereum blockchain, this fund has since expanded to include seven different blockchains and reportedly boasts a market valuation exceeding $2 billion.
The surge in discussions surrounding tokenization has seen other financial entities like Nasdaq Inc. and Robinhood Markets Inc. also making moves in this space. Nasdaq recently submitted a filing to the SEC for permission to trade tokenized stocks, asserting that these would confer the same rights and benefits as traditional shares. Meanwhile, Robinhood has introduced tokenized stocks in Europe, featuring shares from notable private companies including OpenAI and SpaceX.
On the stock market, BlackRock’s share price saw a substantial rise of 2.84%, closing at $1,134.18. The stock has shown a remarkable year-to-date increase of over 10%. While it has a moderately high Momentum score, it currently scores lower on the Value metric, indicating a complex position in potential investment decisions.
