Financial Roundup: BlackRock Plans to Digitalize Its Exchange-Traded Funds through Tokenization
In the ever-evolving world of finance, a significant shift is underway as traditional investment vehicles are being integrated onto blockchain rails. This transformation, known as tokenization, is gaining traction, with various sectors collectively representing Trillions in assets ($12.5T in Q2 2025).
One of the key players driving this change is BlackRock, the world's largest asset manager. Joseph Chalom, a veteran of BlackRock with 20 years of service, is leading the charge to tokenize ETFs and other real-world asset funds. Regulatory approval pending, BlackRock plans to tokenize these funds, a move that could revolutionize the industry by enabling 24/7 settlement and faster transfers.
BlackRock's foray into tokenization started with the launch of BUIDL, a partnership with Securitize, in 2024. This initiative offered tokenized exposure to U.S. Treasuries, marking the first time a traditional manager has tokenized mainstream funds at scale.
The tokenization trend extends beyond BlackRock. Most lending and borrowing is expected to happen on Ethereum L1/L2, and other crypto majors, including Bitcoin, Ethereum, Solana, and XRP, have seen positive price movements. Notably, Dogecoin jumped 20% this week, possibly due to a treasury firm accumulating DOGE and ahead of the DOJE DOGE ETF launching.
Composability is another key benefit of tokenization. Assets from these tokenized funds could be plugged into other areas of DeFi, opening up a world of possibilities for these assets.
In the NFT space, ETH NFT leaders have shown mixed price movements. Abstract NFTs have seen positive price movements, led by Dreamilio. Meanwhile, Pudgy Party has reached 500k downloads across Apple and Google app stores, indicating a growing interest in digital collectibles.
The tokenization trend isn't limited to the financial sector. Collector Crypt's CARDS token saw a price increase after another gacha pack sellout, and the PUMP token, listed on Upbit, has seen a rally and an increase in daily active app users.
Even in the AI sector of crypto, tokens like LEA, simmi, and Acolyt have led top movers. James Seyffart of Bloomberg believes that those downplaying tokenization will likely be proven wrong, and Graeme Moore, Head of Strategy at Project 11, suggests that everything will be tokenized.
Another interesting development comes from World Liberty Fi, which has proposed using 100% of WLFI fees to buy and burn WLFI. Meanwhile, Moonbirds have announced a mystery physical collectible mint open for 24 hours, adding another layer of excitement to the NFT world.
In conclusion, the tokenization trend is gathering momentum, with traditional investment vehicles increasingly finding their way onto blockchain rails. As regulatory approvals are secured and the benefits of tokenization become more apparent, we can expect to see widespread adoption of this transformative technology.
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