BlackRock has reached approximately US$2.3 billion with its tokenized money-market fund BUIDL since its 2024 launch. BlackRock’s tokenized funds are already being used as collateral in digital-asset markets, and the next step is integrating these instruments into Wall Street’s broader financing and margin systems. Key challenges include legal certainty, existing market infrastructure and regulatory frameworks, according to the International Monetary Fund and the International Swaps and Derivatives Association. Early adoption has largely come from crypto markets, particularly stablecoin holders seeking yield. Expansion into conventional financial markets will require banks and other institutions to accept these instruments and existing market infrastructure to accommodate them.
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