Key Takeaways:
- BlackRock is exploring ETF tokenization to extend trading hours and enable DeFi collateralization, following success with Bitcoin ETFs.
- JPMorgan and other financial giants see tokenization as transformative for the $7 trillion money market fund sector.
- BlackRock already manages a $2.2B tokenized money market fund across multiple blockchains, including Ethereum and Avalanche.
BlackRock, the world’s largest asset manager, is reportedly exploring the tokenization of exchange-traded funds (ETFs) on blockchain technology, following the success of its spot Bitcoin ETFs.
According to Bloomberg sources, the company is considering tokenizing funds tied to real-world assets (RWA), though any such effort would face regulatory hurdles.
BlackRock is exploring how to give one of Wall Street’s biggest investment products a digital makeover https://t.co/5j3IgfzBGM
— Bloomberg (@business) September 11, 2025
ETFs have become one of the most widely used investment products, with their number now surpassing publicly listed stocks, according to Morningstar.
Tokenized ETFs could boost efficiency by enabling trading beyond standard market hours and allowing their use as collateral in decentralized finance (DeFi).
BlackRock already has experience in this space through its $2.2 billion BlackRock USD Institutional Digital Liquidity Fund (BUIDL), the largest tokenized money market fund, which operates across Ethereum, Polygon, Avalanche, Aptos, and other blockchains.
JPMorgan has described tokenization as a major leap forward for the $7 trillion money market industry.
Meanwhile, Goldman Sachs and BNY Mellon are leading similar initiatives, with BlackRock expected to participate.
The growth of tokenized money market funds is accelerating as stablecoins and blockchain-based markets draw increasing liquidity from traditional finance.
About The Author
Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
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