BlackRock Tokenization Push Gathers Pace as Wall Street Races to Tokenize Assets

BlackRock’s tokenized money-market fund BUIDL has grown to about US$2.3 billion since its 2024 launch, and the asset manager is exploring whether tokenized fund shares can serve as collateral in traditional finance. Dan Maley, who oversees BlackRock’s Asia-Pacific cash business, said tokenized fund shares are already used as collateral in digital-asset markets; the next aim is to extend that role into conventional trading and margin arrangements. That would require banks to accept the instruments, infrastructure to support them and rules to provide legal certainty. The International Monetary Fund has cited fragmented platforms and legal uncertainty as obstacles, while the International Swaps and Derivatives Association has pointed to custody, margin treatment and cross-border recognition.