On-chain data platform Token Terminal has set the stage for a potential seismic shift in the crypto ecosystem. It predicts that $10 trillion asset management giant and exchange-traded fund (ETF) issuer BlackRock is preparing to unveil its blockchain platform.
BlackRock’s Crypto Masterplan
Recent research by Token Terminal delves into BlackRock’s strategic entry into the crypto space, outlining the firm’s approach to the emerging digital asset class.
According to the platform’s findings, BlackRock has segmented the crypto asset class into three distinct categories: crypto assets, including Bitcoin, stablecoins, and Real World Assets (RWAs), or tokenization, with the launch of its BUIDL fund on the Ethereum blockchain.
Further investments and involvements by BlackRock include ownership of the iShares Bitcoin ETF, $21 billion in assets under management (AuM), a stake in Circle, the issuer of USDC stablecoin with a $34 billion supply, and a position in Securitize, the transfer agent for the BUIDL on-chain money market fund with $500 million in AuM.
When it comes to Bitcoin, BlackRock recognizes three inherent advantages: its status as an internet-native asset accessible globally, its efficiency in cross-border transactions, and its function as an inflation hedge due to its capped supply.
Leveraging these advantages, BlackRock has begun to cater to its diverse global client base by offering the IBIT and ETHA ETFs, carving out a unique product space within its service portfolio. This move suggests a potential strategy to extend this productization approach to other major crypto assets such as Solana (SOL).
The $10 Trillion Blockchain?
But BlackRock’s ambitions extend beyond simply offering crypto-linked investment vehicles. According to Token Terminal’s research, the company believes that blockchain technology can revolutionize capital markets by enabling 24/7 operations, improving transparency and investor access, and lowering fees while expediting settlement times.
Token Terminal’s forecast assumes that BlackRock is ready to launch its blockchain infrastructure, drawing parallels to “Coinbase’s playbook” with its Base platform.
Such a strategic move would allow BlackRock to consolidate and streamline the recordkeeping of holdings across multiple asset classes, representing a staggering $10 trillion in assets under management.
According to Token Terminal, this potential blockchain ecosystem would operate as a unified, global, interoperable, and transparent ledger, potentially “revolutionizing BlackRock’s operational framework” and setting a new standard in the financial industry.
However, the asset manager has not yet indicated the possibility of launching its blockchain or other crypto asset-related products beyond ETFs and its BUIDL fund on the Ethereum blockchain shortly.
When writing, the total crypto market capitalization value stands at $2 trillion after dropping to $1.69 trillion on Monday, August 5, a 7-month low.
On the other hand, Bitcoin has lost the $60,000 support level at the time of writing and is currently trading at $59,500, posting losses of over 1% in the last 24 hours.
Featured image from DALL-E, chart from TradingView.com