BlackRock is considering tokenizing exchange-traded funds (ETFs) linked to real-world assets like stocks, following previous successes in digital assets. Tokenization enables easier trading, international access, and new uses as collateral. The potential for tokenizing real-world assets could tap into the $400 trillion finance market, with the market already hitting $26.5 billion in 2025.

Asset managers like Franklin Templeton are already issuing tokenized share classes, and BlackRock has positioned itself as an early mover. Institutional interest is growing, with new market launches offering tokenized access to U.S. stocks and ETFs. However, challenges remain in reconciling traditional ETF settlement systems with instant blockchain transactions.

Despite hurdles, BlackRock is expanding into digital assets rapidly, reporting significant inflows in the second quarter of 2025. Digital products accounted for a large portion of overall ETF inflows, generating new streams of revenue. The flagship spot Bitcoin ETF has become one of the most popular U.S. ETFs, reflecting continued institutional demand for digital assets.

Read more at Yahoo Finance: BlackRock Plans $2T Real-World Asset Boom with the Tokenization of ETFs