The latest heavyweight to step deeper into this arena is BlackRock, which is reportedly preparing to tokenize exchange-traded funds after the strong performance of its iShares Bitcoin ETF.

BlackRock Steps Beyond Bitcoin

Sources told Bloomberg that the asset manager is now exploring how ETFs tied to stocks and other real-world assets could be issued and traded on-chain. It wouldn’t be BlackRock’s first experiment with tokenization — the firm already runs the BUIDL digital liquidity fund, a tokenized money market vehicle that has surpassed $2 billion in market value.

The success of IBIT, now the largest Bitcoin fund, appears to have emboldened the firm to expand its digital strategy. Tokenizing ETFs, insiders say, could mark a turning point in how investors access traditional securities.

BlackRock is not alone. Galaxy Digital has already tokenized its own common stock, becoming the first Nasdaq-listed company to do so. Nasdaq itself has filed with regulators to allow tokenized shares to trade on its platform. Together, these moves highlight a growing appetite among established players to bridge traditional markets with blockchain technology.

Regulators Opening the Door

The regulatory climate is also shifting. The SEC has rolled out an initiative known as Project Crypto, designed to explore how U.S. markets could adopt blockchain infrastructure. Both the SEC and CFTC are studying how tokenized products could eventually trade around the clock — a structure that would mirror crypto’s 24/7 nature.

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BlackRock CEO Larry Fink has long argued that tokenization of bonds and equities is inevitable. Earlier this year, he urged regulators to allow such products, saying the approach could cut costs for institutions and broaden access for everyday investors.

Analysts Call It a Long Game

Industry watchers caution that the transition will not happen overnight. Bloomberg’s James Seyffart described tokenization as a “decade-long process,” stressing that early filings from firms like Nasdaq are just the beginning. “We’re maybe at step three of 847,” he quipped, adding that those dismissing the idea risk making the same mistake as critics of crypto a decade ago.

If BlackRock’s experiment succeeds, ETFs could become the next multi-trillion-dollar asset class to migrate onto blockchain rails. The result could be a new era where tokenized securities trade seamlessly alongside crypto, accelerating Wall Street’s shift into digital finance.

Source: Bloomberg

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