BlackRock Sees Tokenized Funds Becoming Core Wall Street Infrastructure

BlackRock $BLK expects tokenized investment funds to become increasingly integrated into traditional financial infrastructure, according to Bloomberg.
The asset manager sees potential applications extending beyond investment ownership, including using tokenized fund shares as collateral and transferring assets around the clock.
Blockchain-based fund infrastructure could improve collateral mobility, reduce settlement delays and allow financial institutions to manage liquidity more efficiently outside conventional market hours.
However, broader adoption will depend on regulatory approval, custody arrangements, interoperability and institutional demand. Tokenization may improve how financial assets are transferred without necessarily changing the underlying investment risks.