BlackRock: Ethereum Is Anchoring Wall Street’s Tokenization Race

BlackRock, the world’s largest asset manager, has effectively cemented Ethereum’s status as the foundational layer for institutional asset tokenization. Following the launch of its ICS US Treasury BUIDL fund on the Ethereum public blockchain (utilizing Securitize), the firm signaled a definitive institutional shift toward open, yet permissioned, smart contract networks. This decision is not just a technological pivot; it validates Ethereum as the secure, transparent, and liquid anchor for Wall Street’s burgeoning race to put trillions of dollars of traditional assets on-chain.

Ethereum offers unmatched security and a robust, established infrastructure critical for regulatory compliance. Institutions favor its maturity, its massive developer community, and the proven stability of the network, which minimizes execution risk—a crucial factor for managing large-scale sovereign debt and equity transactions. While alternative chains exist, Ethereum’s robust network effect, combined with the increasing efficiency and low cost of Layer-2 solutions, provides the necessary scale without compromising the foundational security layer that institutional clients demand.

BlackRock CEO Larry Fink has frequently highlighted that the next evolution of financial markets is tokenization. By choosing Ethereum for BUIDL, BlackRock is setting a precedent that other major financial institutions—from Goldman Sachs to JPMorgan—are increasingly following. Tokenization offers massive improvements in operational efficiency, instant settlement, and reduced counterparty risk, features that are highly attractive to traditional finance (TradFi).

Ethereum is increasingly viewed not merely as a platform, but as the future settlement layer for global finance. BlackRock’s strategic move provides the necessary stamp of approval for institutional funds that have historically been wary of blockchain technology. The tokenization market is projected to reach $10 trillion by 2030, and Ethereum’s current market share and established technology standards ensure its long-term dominance as the protocol of choice for bridging TradFi and decentralized finance (DeFi).

Source: BlackRock: Ethereum Is Anchoring Wall Street’s Tokenization Race