BlackRock’s discussions with the SEC on tokenizing its flagship ETFs may transform mainstream funds into on-chain collateral, potentially influencing Layer-1 and DeFi markets amid recent crypto price declines.
BlackRock is reportedly in talks with the U.S. Securities and Exchange Commission to tokenize its flagship iShares ETFs, a move that could enable mainstream funds to serve as on-chain collateral. The development comes as Bitcoin, Ethereum, and Solana experience price declines. Bitwise CIO Matt Hougan previously indicated that such tokenization could launch within 90 days to 12 months, while BlackRock CFO Martin Small mentioned timelines in a similar range. Analysts suggest that the initiative could boost Layer-1 blockchain projects and decentralized finance ecosystems.