BlackRock wants tokenized funds to back traditional Wall Street trades

BlackRock has identified the use of tokenized investment funds as trading collateral in traditional financial markets as a potential next application for blockchain technology, building on existing arrangements that already allow institutional crypto traders to pledge tokenized fund holdings. According to an October 19 Bloomberg report , Dan Maley, BlackRock’s head of cash management for Asia Pacific, said the firm’s tokenized funds are already being used as collateral in digital-asset markets. Extending that capability into conventional financial markets remains more complicated, although the asset manager sees opportunities for investors to transfer fund holdings without first redeeming them for cash. The development moves BlackRock’s discussion beyond issuing digital representations of traditional investment products.

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