Is BlackRock About to Launch its Very Own Blockchain?

BlackRock, world's biggest asset manager, is allegedly on the verge of launching its own blockchain platform, which could significantly impact the cryptocurrency landscape.

Research from Token Terminal indicates BlackRock is strategically advancing into the cryptocurrency sector, dividing digital assets into three categories: cryptocurrencies like Bitcoin, stablecoins, and tokenized Real World Assets (RWAs). They have already launched the BUIDL fund on Ethereum as part of this initiative.

BlackRock is the world’s largest asset manager, with $10 trillion in assets under management.

We researched the firm’s crypto strategy, so you don’t have to.

Here’s what we found:

1. DIGITAL ASSETS (ASSET CLASS)

The firm divides the crypto asset class into three different… pic.twitter.com/YwRz5Lr2Kr

— Token Terminal (@tokenterminal) August 12, 2024

BlackRock’s crypto involvement also includes their iShares Bitcoin ETF with $21 billion in assets, a stake in Circle (issuer of USDC stablecoin), and an investment in Securitize, managing the BUIDL on-chain money market fund.

The firm views Bitcoin as a valuable asset due to its global accessibility, efficiency for cross-border transactions, and inflation-hedging properties. They currently offer IBIT and ETHA ETFs and may extend this strategy to other significant cryptocurrencies like Solana (SOL).

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Token Terminal’s analysis suggests BlackRock believes blockchain technology can transform capital markets by providing continuous operations, enhancing transparency, reducing fees, and speeding up settlement processes. They foresee BlackRock potentially launching its blockchain infrastructure, akin to Coinbase’s Base platform.

Such a move could revolutionize BlackRock’s operations, allowing for streamlined record-keeping across various assets, thereby setting a new industry benchmark. However, BlackRock has not officially announced any immediate plans for blockchain or additional crypto-related products beyond their existing ETFs and the BUIDL fund on Ethereum.

Alexander Stefanov