BlackRock May Develop Tokenization Technology and Tokenized ETFs, With Bitcoin ETF Success Potentially Driving Broader Adoption

• BlackRock is developing proprietary technology to tokenize traditional assets, including ETFs.

• Tokenization could lower costs by removing intermediaries and expand access for retail and younger investors.

• BlackRock’s BUIDL fund is $2.8B with 89 holders; BlackRock manages $13.46 trillion in AUM.

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Published: 2025-10-14 | Updated: 2025-10-14 | Author: COINOTAG

What is BlackRock tokenization?

BlackRock tokenization refers to BlackRock’s initiative to create digital representations of traditional assets, including the possibility of tokenized ETFs. The firm is building its own technology and exploring integrations with digital wallets and major finance platforms to broaden investor access and reduce intermediary fees.

How will BlackRock tokenize ETFs and other assets?

BlackRock is developing proprietary infrastructure to issue and manage tokenized versions of funds and assets. The firm disclosed $13.46 trillion in assets under management, signaling capacity to scale pilots. BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) is an early example at $2.8 billion, issued by Securitize and holding 89 on-chain holders, according to RWA.xyz data. BlackRock also made a strategic investment of $47 million in Securitize earlier this year to deepen that partnership, Joseph Chalom said this year, calling the move “another step in the evolution of our digital assets strategy.”

Frequently Asked Questions

Will tokenized ETFs reduce investment costs for retail investors?

Tokenized ETFs can reduce costs by cutting intermediaries and streamlining settlements. BlackRock argues tokenization removes multiple layers of fees across custody and transfer. While operational and regulatory costs remain, tokenized instruments could lower friction and potentially reduce fees over time if widely adopted.

How can I hold tokenized assets in a digital wallet?

You would hold tokenized assets in a compliant digital wallet that supports the issuer’s token standard. BlackRock is discussing wallet integrations with major platforms. Over time, wallets will likely provide portfolio views, transfers, and settlement functions similar to traditional brokerage accounts but on-chain.

Key Takeaways

• Institutional push: BlackRock is actively developing technology and partnerships to tokenize traditional assets, signaling major institutional interest.
• Early adoption: Products like the BUIDL fund ($2.8B, 89 holders per RWA.xyz) show tokenized assets are moving beyond proofs-of-concept.
• Investor impact: Tokenization could lower fees and increase access, particularly for younger investors, but will require regulatory and infrastructure alignment.

Conclusion

BlackRock’s tokenization efforts mark a significant institutional bet on digital representations of traditional assets. The firm’s size—$13.46 trillion AUM—and strategic moves, such as a $47 million investment in Securitize and market-leading ETFs for Bitcoin and Ethereum, underscore a methodical approach. As BlackRock develops proprietary technology and explores tokenized ETFs, the market should expect gradual product rollouts and clearer regulatory frameworks. COINOTAG will monitor developments and report updates as announcements emerge.

Sources: Statements from Larry Fink and Joseph Chalom at BlackRock’s Q3 earnings broadcast; fund data from RWA.xyz; ETF AUM figures reported by CoinGlass; issuer information from Securitize. (All sources cited as plain text.)