Study: BlackRock, which manages $10 trillion, may launch its own blockchain

Source: Blockchain Knight

Token Terminal, an on-chain data platform, said that BlackRock may launch its own blockchain, similar to Coinbase's L2 network Base.

This assumption was made after a survey of the various types of assets held by the asset management company.

BlackRock divides its Crypto assets into three categories: Crypto assets such as BTC, stablecoins such as USDC, and tokenized assets such as BUIDL.

According to reports, BlackRock believes that BTC has three distinct advantages as an asset.

First, BTC is an Internet-native asset that can be used globally. Second, BTC's efficiency in cross-border transactions is also outstanding. Finally, BTC's fixed supply cap makes it a tool to hedge against inflation.

Token Terminal highlighted the role of BlackRock’s iShares BTC ETF and expects the company to productize all major Crypto assets in a similar manner.

It is worth noting that while BlackRock has already done this on Ethereum, the prospects for a Solana ETF remain slim at present.

Nevertheless, the on-chain data platform demonstrates BlackRock’s belief in the potential of blockchain technology to improve capital markets. Token Terminal cited the advantages of capital markets operating around the clock, increased transparency and investor access, lower fees and faster settlement.

This investigation led Token Terminal to conclude that the company could launch its own blockchain, much like Coinbase did with BaseL2.

Token Terminal concluded: “We believe that BlackRock will eventually launch its own blockchain, following a similar playbook that Coinbase uses with Base. This will allow BlackRock to centrally record its various asset holdings into a single, global, interoperable and transparent ledger.”

BlackRock’s blockchain launch would mark a major shift in the traditional finance (TradFi) sector, heralding a move toward decentralized solutions.

Similar to Coinbase’s transformation into a Web3 gateway with Base, BlackRock’s blockchain initiative could elevate the company from a traditional asset manager to a leader in the digital asset space.

Whether BlackRock will launch its own blockchain remains unknown, as the company did not immediately respond to BeInCrypto’s request for comment. Such a move would need to be well-defined, though.

One user X commented: "As much as we would like to see this, it simply won't happen in the short term unless the relevant regulations and compliance are clear. This is due to the need for compliance. It is important to note that the entire blockchain ecosystem is huge, but how will they solve compliance issues?"

Leveraging blockchain technology, BlackRock can simplify operations, reduce costs, increase transparency and enhance security across its wide range of financial products and services.

This approach has the potential to revolutionize trading and create a more efficient and secure financial ecosystem.

In addition, this venture will also bring new opportunities for its customers and investors to access a variety of digital assets. They will also be exposed to more seamless and user-friendly investment opportunities.

This will further democratize access to financial products and consolidate BlackRock's position as a leader in digital asset management.

With the success of the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), the company has set a new standard in the tokenization of real-world assets (RWA).

BUIDL recently became the largest tokenized fund, demonstrating the development and increasing integration of blockchain technology into the traditional financial (TradFi) sector.

While the overall demand for such tokenized products is still in its infancy, specific segments continue to show encouraging interest.

BlackRock’s BUIDL and Franklin Templeton’s BENJI illustrate this.