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BlackRock is preparing to tokenize parts of its iShares ETF lineup, according to remarks from Chief Financial Officer Martin Small. A crypto analyst describes the move as a major step toward on-chain finance. Small said tokenization could begin within three to 12 months, though he set no firm deadline. The discussion centers on enabling ETFs to trade and settle through digital wallets.
Crypto Sensei framed the comments as evidence that tokenization at the world’s largest asset manager has shifted from theory to execution. Still, Small clarified that timing remains uncertain. He noted the process could take 90 days or up to a year. He did not promise that all ETFs would move on-chain at once.
BlackRock already launched BUIDL, a tokenized money market fund that surpassed $1 billion in assets. The fund serves as a proof of concept for real-world assets issued on blockchain infrastructure. Public materials and statements from CEO Larry Fink outline plans to integrate tokenized iShares products with digital wallets and on-chain collateral systems.
iShares oversees between $5.2 trillion and $5.5 trillion across about 1,700 ETFs globally. In the United States alone, it manages roughly $3.6 trillion, which accounts for around 30% of the US ETF market. The broader US ETF industry stands at $12.2 trillion.
The analyst argued that tokenizing even 5% to 20% of that industry could place hundreds of billions or several trillion dollars on blockchain rails. That estimate reflects a phased approach rather than a full migration. The scale would depend on regulatory clearance and technical rollout.
As tokenized collateral grows, competition between blockchain networks could intensify. Ethereum appears in BlackRock’s thematic materials as a likely initial settlement layer. Yet public statements do not commit to a single blockchain. This leaves room for multiple networks to compete for institutional flows.
The video repeatedly referenced XRP and Ripple’s ecosystem as potential infrastructure for cross-border settlement and foreign exchange once tokenized assets circulate. Crypto Sensei described XRP as plumbing for the new financial system. The claim aligns with Ripple’s focus on payments and liquidity services.
The analyst also cited Morgan Stanley’s application for an OCC national trust bank charter to expand digital-asset custody and staking services. Franklin Templeton executives stated that digital wallet adoption now outpaces early internet growth. Internal projections suggest that a 1% allocation of Asia’s $108 trillion household wealth into digital assets could inject nearly $2 trillion into crypto markets.
Stephen McClurg of Valkyrie, referred to in the video as from Canary Capital, said he would not be surprised if BlackRock files for an XRP or Solana spot ETF around 2026 or 2027. He pointed to institutional demand and market capitalization growth as key thresholds. Fidelity, Franklin Templeton, and Invesco have already pursued other crypto investment products.
Ripple’s trajectory also featured prominently. The analyst argued that if Ripple secures a banking license and places XRP on its balance sheet, it could rival large financial institutions in scale. Partnerships across Asia form part of that narrative. Yet which blockchain will anchor the next phase of tokenized ETFs?
As discussions continue, the central issue remains the migration of traditional ETF and money market values onto blockchain systems. The pace, network selection, and regulatory framework will determine how the infrastructure evolves.
Also Read: XRP News Today: Will BlackRock’s iShares XRP Trust Trigger a Market Breakout in 2025?
BlackRock’s tokenization plans have brought fresh attention to on-chain finance as iShares ETFs move closer to digital wallet access. With BUIDL already live and XRP, Ethereum, Solana, Chainlink, and HBAR in the discussion, the next phase of tokenized finance may depend on which networks secure institutional use.
