BlackRock asset tokenization plans to digitize traditional securities—converting ETFs, cash funds and other instruments into blockchain-based tokens to increase liquidity and broaden investor access, according to CEO Larry Fink.
-
BlackRock forecasts tokenization as a multi-decade shift that will digitize ETFs and other traditional assets.
-
BlackRock manages $13.5 trillion in assets and holds roughly $104 billion in crypto-related assets, highlighting institutional exposure.
-
The tokenization market could grow to over $13 trillion by 2030, up from an estimated $2 trillion in 2025 (industry estimates).
BlackRock asset tokenization advances digital finance: Larry Fink says tokenized ETFs and funds will broaden investor access and improve market liquidity.
What is BlackRock asset tokenization?
BlackRock asset tokenization refers to the process of converting traditional financial instruments—such as ETFs, cash funds, bonds and real estate exposures—into blockchain-based tokens that can be traded and transferred digitally. This approach aims to improve liquidity, reduce settlement friction, and simplify access for a broader range of investors.
How is BlackRock implementing tokenization and what products exist today?
BlackRock has begun integrating tokenization through targeted products and pilot programs. The company launched the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), a tokenized cash market fund with about $2.8 billion in assets as of March 2024, and has public commentary from CEO Larry Fink endorsing tokenized ETFs as a gateway for new investors. BlackRock’s teams are evaluating blockchain custody, trading rails, and operational frameworks to support tokenized securities within their broader asset-management ecosystem. Sources include the CEO’s interview on CNBC and BlackRock public disclosures (plain text references).
Frequently Asked Questions
Is BlackRock tokenizing ETFs safe for retirement portfolios?
Tokenization itself is a technological wrapper around existing assets; safety depends on underlying fund structure, custody arrangements, and regulatory oversight. BlackRock emphasizes standardized governance and institutional custody practices, but investors should evaluate counterparty risk, custody providers, and regulatory clarity before allocating retirement funds.
How will tokenization affect everyday investors?
Tokenization can lower friction for small-dollar investing, enable fractional ownership, and speed settlement times—making it easier for everyday investors to access traditionally illiquid assets. In plain terms: tokenization could allow more people to buy slices of funds or real estate using digital platforms with faster trading and settlement.
Key Takeaways
- Strategic priority: BlackRock views asset tokenization as a long-term growth opportunity that could reshape asset distribution and liquidity.
- Existing products: The BUIDL tokenized cash market fund ($2.8B as of March 2024) demonstrates practical deployment of tokenized fund structures.
- Investor action: Monitor regulatory developments and custody standards; consider tokenized exposure as complementary to traditional allocations, not a wholesale replacement.
Conclusion
BlackRock’s pivot toward asset tokenization reflects a broader trend of institutional adoption of blockchain-based financial infrastructure. With $13.5 trillion in assets under management and growing crypto-related holdings, BlackRock’s exploration of tokenized ETFs and funds is positioned to increase market liquidity and investor access over time. Watch regulatory updates and product disclosures from BlackRock and industry sources as tokenization initiatives expand.
Publication: COINOTAG — Published: 2025-10-15. Updated: 2025-10-15.
Author/Organization: COINOTAG
Sources (plain text): CNBC interview with Larry Fink; BlackRock public disclosures and filings; industry estimates on tokenization market size (2025 and 2030 projections).
Crypto Investing Risk Warning
Crypto assets are highly volatile. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. Read the full disclaimer provided by COINOTAG.
Affiliate Disclosure
This article may contain affiliate relationships disclosed by COINOTAG. See the COINOTAG Affiliate Disclosure for more information.
