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BlackRock Inc. is planning to launch tokenized exchange-traded funds (ETFs) on blockchain networks. As reported by Bloomberg, the asset manager is exploring how to tokenize ETFs while keeping their values linked to traditional assets like stocks. This push follows a 17.7% year-over-year growth in BlackRock’s assets under management (AUM), reaching a record $12.53 trillion in Q2 2025, partly driven by a 329.3% increase in digital assets.
Through tokenization, BlackRock aims to enhance ETF trading with benefits such as extended hours and fractional ownership. Its existing tokenized money-market fund, BUIDL, has over $2 billion in management since its launch in 2024. The firm faces challenges, including regulatory and custodial issues stemming from the need for instant settlements for tokenized assets, in contrast to traditional ETF settlement processes.
In addition to tokenized ETFs, BlackRock is also expanding its investment services, including opening a new office in Kuwait for advisory services and launching a customized portfolio offering with Citigroup managing approximately $80 billion in assets, all aimed at increasing AUM.
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