šŸ“Š BlackRock wants to tokenize ETFs

PLUS: BlackRock is testing tokenized ETFs, Nasdaq wants them live next to equities, and Hyperliquid is battling over USDH. Meanwhile, the Fed lines up its first cut since 2024.

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Cryptopolitan News
September 12, 2025 ā€¢ Estimated Reading Time: 10 minutes

šŸ¦ BlackRock wants your ETFs to trade like crypto

Picture this. It is 2:13 a.m. Markets are closed. Yet your S&P 500 fund is trading, settling instantly, moving as easily as USDC. That is the future BlackRock is pointing toward.

According to Bloomberg, the worldā€™s biggest asset manager is now exploring tokenized versions of its ETFs and other real-world assets, so they can live on-chain and trade 24/7, not just between 9:30 and 4.

This is not a sudden pivot. It is the next step in a plan that has been building for years.

  • In 2024 BlackRock launched BUIDL, a tokenized money-market fund that already holds more than $2B and is widely used across crypto rails.

  • Its iShares Bitcoin Trust (IBIT) became the most successful ETF launch in U.S. history, a reminder that when BlackRock shows up, money follows.

  • The firm has also tested tokenized trades on JPMorganā€™s Kinexys (rebrand of Onyx) settlement system, experimenting with how fund shares might actually move on-chain.

The catch

Wall Streetā€™s systems are not built for this. ETFs clear through DTCC, while blockchains settle instantly and never close. Reconciling those two means rewriting the rules around dividends, proxy votes, splits, and custody. That is why Nasdaq has already asked regulators to approve trading of tokenized securities side by side with traditional ones.

šŸ”Ž Quick Explainer: What is tokenization?

  • The idea: Take a real-world asset, like an ETF share, a Treasury bond, or even real estate, and create a digital version of it on a blockchain.

  • How it works: The asset is held by a custodian in the traditional system. At the same time, a token is issued on-chain that represents ownership of that asset.

  • Why it matters: That token can then move at blockchain speed. It can trade 24/7, settle instantly, be split into fractions, or even be used as collateral in DeFi.

  • In short: Tokenization does not change what the asset is, it changes how it moves and who can access it.

The bigger picture

Consultants see tokenized financial assets reaching $2T by 2030. Treasuries have led the way so far, with BlackRockā€™s BUIDL, Ondo, and Fidelity all moving billions on-chain. Equities and ETFs are the harder leap, and that is where BlackRock is focusing next.

šŸ‘‰ BlackRock is not waiting for perfect clarity. It is building the tools, running the pilots, and nudging the rules to catch up. If ETFs make it on-chain, we stop talking about crypto markets versus traditional markets, and we start talking about markets that finally run at internet speed.

šŸ“ˆ Market Watch

Fed finally ready to cut, per economists
Wall Street is betting Powell blinks next week. A Reuters poll shows 105 out of 107 economists expect a rate cut on September 17, the first since 2024. The backdrop: job growth has slowed to a crawl, layoffs are ticking higher, and inflation is steady but still above target. Stocks are already partying, the Dow closed above 46,000 for the first time ever.

Global ripple
Asia and Europe rode the wave. Hong Kong tech ripped higher after news that Alibaba and Baidu are building AI chips to reduce their Nvidia dependence. Japan and India notched new highs. The dollar slid, gold hovered near record territory, silver and platinum tagged along.

Crypto holds its breath
Bitcoin is locked between $110K and $116K, with ETF inflows drying up and options data pointing to a calm weekend. Traders are eyeing $114K as the key line. ETH popped above $4.5K, sparking liquidations, while altcoins keep swinging harder. Big expiry at month-end could bring more action, but for now crypto is moving in step with Fed expectations.

 šŸ‘€ Are you watching: Hyperliquidā€™s stablecoin drama

The Hyperliquid DEX is days away from choosing who gets to issue its native stablecoin, USDH.

On paper, it looked like a fair fight. Paxos and Ethena both pitched strong models, promising high community yield and more decentralization. Interestingly Ethena pulled out last minute, even after having community support.

In practice, the vote is already tilting hard. Native Markets, backed by Stripe, has surged ahead with validator support and a 95% win probability on Polymarket.

The twist? The community isnā€™t happy. Native Markets is offering to share only 50% of yield with users (vs 95% from others), and critics say the team is leaning too heavily on Stripeā€™s bridge infrastructure. Some stakers are already talking about pulling support.

Why it matters:

  • Up to $220M in fees could flow through USDHā€™s issuer.

  • Hyperliquid already runs $12.8B in open interest and $2.7B TVL, so the choice here shapes the chainā€™s future.

  • HYPE token is rallying, but a rushed vote risks eroding community trust.

Medium articles we are reading

Friday picks: Have a great weekend :D

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šŸŽ­ Culture Corner

Coinbase has asked a federal court to sanction the SEC after it revealed that a year of Gary Genslerā€™s texts were wiped, covering the FTX collapse and the agencyā€™s biggest crypto crackdowns.

The SEC blames a device policy that auto-erased Genslerā€™s phone after 45 days offline. Investigators later confirmed those messages should have been preserved as federal records. Coinbase calls it a breach of court orders and FOIA, noting the SEC fines private firms billions for the same lapses.

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