After launching a $2.2 billion tokenized money market fund earlier this year, the firm is now exploring ways to bring its entire ETF portfolio on-chain, according to Bloomberg. The move could reshape how everyday investors and institutions access financial markets, offering faster settlement, lower costs, and trading that never sleeps.
This shift signals something bigger. The future of markets may not be confined to Wall Street trading floors or regional stock exchanges. Instead, it could unfold on blockchain networks accessible from nearly anywhere in the world.
Why Tokenized ETFs Matter
Exchange-traded funds, or ETFs, are investment vehicles that let people buy a basket of assets such as stocks or bonds through a single product. Tokenizing ETFs means representing ownership of those products as digital tokens recorded on a blockchain. This can simplify how shares are issued, transferred, and settled. Robinhood is a good example of this:
This is what democratizing finance looks like.
ICYMI, exposure to U.S. stocks and ETFs are available to European investors, tokenized on-chain.
More info: https://t.co/B32vdvH2EU pic.twitter.com/kPDOLRwvRP
— Vlad Tenev (@vladtenev) July 18, 2025
The potential benefits are clear. Traditional markets often take two days or more to settle trades, while tokenized assets can settle in minutes. Costs could also fall since blockchain reduces the need for layers of intermediaries. And unlike stock markets that close overnight or on weekends, blockchain-based trading is open 24/7.
BlackRock is about to tokenize ETFs – basically putting records of crypto ownership back on the blockchain.
Total nonsense!
But I wouldn’t be surprised if tokenized ETFs somehow end up delivering higher returns than regular ones. (Just to make everyone believe that’s how it’s… pic.twitter.com/8YvAUZstRW
— Rabbit Swap 🐰 (@Hey_rabbit_here) September 12, 2025
BlackRock’s earlier success with its tokenized money market fund offers a glimpse of what this future might look like. That fund quickly attracted more than $2 billion in deposits by providing investors with real-time settlement and around-the-clock access. Tokenizing ETFs could apply the same principles to a much wider range of assets, from equity funds to bond products. This is what Larry Fink, the CEO of BlackRock, said about tokenization of finance:
The Future of Finance: Tokenizing Real-World Assets
The entire bond market is undergoing a massive transformation as it’s being tokenized right now. BlackRock and other major players understand that the future of exposure to this new asset class lies in tokenization and ETFs.… pic.twitter.com/eInbRg0XgL
— Echo 𝕏 (@echodatruth) October 3, 2024
Part of a Larger Trend
BlackRock is not alone in this exploration. Franklin Templeton and WisdomTree have also launched tokenized funds in recent years, signaling that traditional finance is gradually warming up to blockchain’s efficiency. According to research firm 21.co, the total value of tokenized real-world assets has already surpassed $3.5 billion, with steady growth expected as more institutions join in.
Meet Franklin Templeton’s Benji Technology Platform.
Tokenized securities. Intraday Yield. Instant 24/7 wallet-to-wallet transfers.
We’re just getting started. #blockchain pic.twitter.com/4BKFTm9Flj
— Franklin Templeton Digital Assets (@FTDA_US) June 10, 2025
For investors, the rise of tokenized funds may resemble the impact of gold ETFs two decades ago. Back then, gold was difficult for many to buy and store. Once ETFs made it accessible through stock exchanges, investment surged. Tokenized ETFs could play a similar role by opening financial markets to anyone with an internet connection and a digital wallet.
Disclaimer
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