BlackRock Introduces Tokenized Treasury Fund on Ethereum Blockchain

BlackRock has officially launched its first tokenized U.S. Treasury fund on the Ethereum blockchain, signaling a new phase in the fusion of traditional finance and decentralized technology. The move highlights how major financial institutions are increasingly adopting blockchain to modernize asset management and make fixed-income products more accessible to a wider range of investors.

The new fund, called the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), will allow investors to purchase tokenized shares representing U.S. Treasury bills and short-term government securities. By leveraging Ethereum’s blockchain infrastructure, BlackRock aims to provide 24/7 accessibility, faster settlement times, and increased transparency compared to conventional fund structures.

According to the company, institutional and accredited investors can buy and redeem tokens directly through a dedicated platform using stablecoins such as USDC. Each token represents a fractionalized share of the fund’s underlying assets, backed by short-term U.S. Treasuries and repurchase agreements. Dividends will be distributed in the form of on-chain payouts, eliminating the need for intermediaries and streamlining investor access.

BlackRock CEO Larry Fink described tokenization as “the next generation of markets,” emphasizing that blockchain technology will play a major role in improving liquidity and reducing operational costs. The firm’s move also comes at a time when institutional interest in on-chain finance is accelerating, with major banks and asset managers exploring blockchain as a tool for efficiency and transparency.

The fund is being launched in partnership with Securitize, a regulated digital asset platform responsible for issuing and managing the on-chain tokens. Securitize’s infrastructure will handle investor onboarding, compliance checks, and token issuance, ensuring that all transactions meet U.S. securities regulations.

Industry analysts believe BlackRock’s decision to bring a Treasury product on-chain marks a turning point for real-world asset (RWA) tokenization, a rapidly growing segment in decentralized finance (DeFi). Tokenized treasuries have become one of the fastest-expanding areas in crypto, offering stable returns tied to traditional assets while maintaining the programmability of blockchain.

As of mid-2025, on-chain Treasury products already hold over $2 billion in assets, with platforms such as Franklin Templeton and Ondo Finance leading early adoption. BlackRock’s entry into the space could accelerate institutional legitimacy and drive broader participation from other global asset managers.

By choosing Ethereum as its base network, BlackRock reinforces the platform’s position as the leading ecosystem for institutional tokenization, despite ongoing competition from other blockchains offering lower fees and higher throughput. Ethereum’s maturity, security, and established developer community remain key factors behind the decision.

The launch of BUIDL also underscores a broader transformation underway in traditional finance, where blockchain-based infrastructure is increasingly being used to digitize and distribute legacy financial instruments. For investors, the benefits are clear: faster settlements, lower costs, and round-the-clock access to one of the world’s most stable asset classes.

With BlackRock’s endorsement, tokenized treasuries are no longer a niche experiment—they’re becoming a cornerstone of the future financial system.