BlackRock Leads the Fusion of TradFi and DeFi Through Tokenized Assets and Crypto ETFs

BlackRock Leads the Fusion of TradFi and DeFi Through Tokenized Assets and Crypto ETFs

As traditional financial institutions increasingly enter the cryptocurrency space, the boundary between Traditional Finance (TradFi) and Decentralized Finance (DeFi) is rapidly dissolving. BlackRock, the world’s largest asset manager with $11.6 trillion in assets under management (AUM), has emerged as a key player at this intersection by launching a suite of crypto-focused investment products.

Product Expansion into Crypto Markets
In 2024, BlackRock introduced two prominent spot cryptocurrency ETFs: the iShares Bitcoin Trust ETF (IBIT) and the iShares Ethereum Trust ETF (ETHA). Furthermore, the firm partnered with blockchain asset tokenization platform Securitize to launch BUIDL, the BlackRock USD Institutional Digital Liquidity Fund. This money market fund is tokenized on-chain and aims to distribute U.S. Treasury yields to digital wallets.

BlackRock's long-term goal is clear: tokenize all asset classes to enhance market efficiency, transparency, and investor accessibility.

Rapid AUM Growth in Crypto and Stablecoin Markets
Within just one year of entering the crypto market, BlackRock's crypto-related assets under management grew to $55 billion. As of early 2025, the stablecoin market has reached a capitalization of $220 billion. BUIDL has played a pivotal role in bridging the TradFi-DeFi divide by bringing real-world yields on-chain. By the end of April 2025, BUIDL had surpassed $2.46 billion in AUM.

The Rise of Real-World Assets (RWA) in DeFi
Real-world assets (RWAs) refer to tokenized representations of tangible or traditional assets such as fiat currency, stocks, real estate, gold, or bonds. BlackRock’s BUIDL fund, backed by short-term U.S. Treasuries, is a prime example of successful RWA integration. This initiative coincides with a significant rebound in the DeFi sector, which reached a total value locked (TVL) of $95.6 billion by April 25, 2025.

Democratizing Investment Access
BlackRock believes that asset tokenization will democratize global investment opportunities by improving access to a broader range of assets through blockchain infrastructure. If successful, tokenized RWA funds could evolve into widely accepted investment vehicles, much like ETFs today.

BlackRock’s BUIDL is not just a fund — it represents the convergence of legacy finance and blockchain innovation. Its trajectory will likely set the tone for future developments in both traditional and decentralized finance ecosystems.