Suche
BlackRock relies on tokenization: new opportunities for investors!
BlackRock announces it will develop tokenization technology to incorporate real-world assets, spurred by the success of Bitcoin ETFs.
BlackRock relies on tokenization: new opportunities for investors!
BlackRock CEO Larry Fink announced today during the company's third quarter earnings call that BlackRock is intensifying efforts to bring real-world assets (RWAs) on-chain through tokenization technology. This venture could give investors access to tokenized versions of exchange-traded funds (ETFs), thereby increasing participation in capital markets. Fink highlights that BlackRock teams are exploring tokenization to improve market efficiency and accessibility.
He noted that while tokenization is growing, it is primarily used by younger demographics. According to Fink, the tokenization of assets, including real estate, stocks and bonds, is still in its early stages. Introducing tokenized versions of traditional assets could help investors prepare for long-term goals like retirement planning.
Opportunities of tokenization
Fink sees the tokenization of RWAs as the next big opportunity of the coming decade, with a transition from traditional to tokenized assets. In this context, BlackRock's assets under management rose to $13.4 trillion in the third quarter, compared to $11.4 trillion a year earlier. Digital investment product revenue was $61 million, within total revenue of $6.5 billion for the quarter.
Another significant product from BlackRock is the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), the largest tokenized money market fund, which has grown to $2.8 billion in assets. The current value of the crypto market is approximately $4 trillion, with much of that held in wallets outside the US.
Successes of Bitcoin and Ethereum ETFs
BlackRock has launched spot Bitcoin (BTC) and Ethereum (ETH) ETFs in the US following regulatory approvals in 2024. The IBIT ETF now manages $93 billion, while the ETHA ETF has grown to $17 billion in two years. Interestingly, the IBIT ETF recently experienced net inflows of $60 million, despite a total outflow of $326 million from Bitcoin ETFs.
In contrast, ETHA faced significant outflows totaling $310 million due to a market decline in crypto assets. However, Fink is optimistic that the tokenization of ETFs could attract a wider range of investors to traditional markets, further driving the shift towards a more digital financial landscape.