BlackRock reports tokenized funds are integrating into Wall Street infrastructure as collateral and enabling 24/7 transfers.
RWA & Tokenization ·
BlackRock has characterized tokenized funds as transitioning from experimental phase to core infrastructure, with its BUIDL fund now valued at approximately $2.3 billion. The asset class is being deployed for collateral purposes and to enable round-the-clock trading across blockchain networks.
The shift reflects growing adoption of tokenization within institutional finance workflows, where assets can be settled and transferred outside traditional market hours. However, BlackRock acknowledges that meaningful scaling depends on broader institutional participation and regulatory clarity. Bank adoption remains uneven, and questions about custody frameworks and compliance oversight persist across jurisdictions.
The trajectory highlights a gap between technical capability and institutional readiness. While tokenized infrastructure is demonstrably operational at this scale, systemic integration into mainstream finance—particularly among traditional custodians and compliance regimes—remains incomplete. The regulatory environment and banking sector alignment will likely determine whether this infrastructure becomes foundational or remains a parallel settlement layer for a subset of market participants.