BlackRock converts ETFs into tokens after its success in IBIT

According to a Bloomberg report, the asset manager is exploring how to tokenize exchange-traded funds (ETFs) and make them available on trading chains. The company plans to tokenize funds linked to real-world assets (RWAs), including stocks.

This comes on the heels of BlackRock's success with the iShares Bitcoin ETF (IBIT), which is the largest Bitcoin fund. Notably, the asset management company already owns the institutional dollar liquidity fund (BUIDL), which is a symbolic money market fund with a market value of just over two billion dollars.

This development comes at a time when tokens are gaining momentum on Wall Street. Galaxy Digital has become the first company listed on NASDAQ to have its common shares tokenized. Meanwhile, NASDAQ has filed a request with the U.S. Securities and Exchange Commission (SEC), seeking approval to allow investors to trade tokenized stocks.

The U.S. Securities and Exchange Commission (SEC) has expressed its readiness to support the efforts of companies like BlackRock in the field of tokens. The commission has already launched the "Cryptocurrency Project," which aims to enable U.S. markets to trade across supply chains. The commission is also working with the Commodity Futures Trading Commission (CFTC) to explore how to allow these markets to trade 24/7, just like the cryptocurrency market.

Meanwhile, it is worth noting that Larry Fink, the CEO of BlackRock, is a proponent of tokenization. Earlier this year, Fink called on the U.S. Securities and Exchange Commission (SEC) to approve the tokenization of bonds and stocks, as it would have an impact on cost savings for institutions. He noted that this would make investing easier and more cost-effective.