On-chain data platform Token Terminal has paved the way for a potential seismic shift in the crypto ecosystem, predicting that $10 trillion asset management giant and exchange-traded fund (ETF) issuer BlackRock is preparing to unveil its blockchain platform.
BlackRock’s Blueprint for Cryptocurrencies
Recent research Token Terminal looks at 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 (RWA), or tokenization, with the launch of its BUILD funds on the Ethereum blockchain.
Other BlackRock investments and commitments include ownership of the $21 billion iShares Bitcoin ETF. assets under management (AuM), a stake in Circle, the issuer of the USDC stablecoin with a supply of $34 billion, and a position in Securitize, the transfer agent of the BUIDL blockchain monetary fund with $500 million in assets under management.
When it comes to Bitcoin, BlackRock recognizes three inherent advantages: its status as a globally accessible internet-native asset, its efficiency in cross-border transactions transactionsand its inflation hedging function due to its capped supply.
Leveraging these advantages, BlackRock has begun to address the needs of its diverse global client base by offering IBIT and ETHA ETFs, creating a unique product space within its portfolio of services. This move suggests a potential strategy to extend this productization approach to other major crypto assets such as Solana (GROUND).
The $10 trillion blockchain?
But BlackRock’s ambitions go beyond simply offering cryptocurrency-related investment vehicles. According to research from Token Terminal, the firm believes that blockchain technology can revolutionize financial markets by enabling 24/7 trading, improving transparency and investor access, and reducing fees while accelerating settlement times.
Token Terminal’s forecast assumes that BlackRock is ready to launch its blockchain infrastructure, drawing parallels to the “Coinbase playbook” with its Base platform.
Such a strategic move would allow BlackRock to consolidate and streamline 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 function 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 anytime soon.
At the time of writing, the total value of the cryptocurrency market cap stands at $2 trillion after falling to a 7-month low of $1.69 trillion on Monday, August 5.
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 of DALL-E, chart from TradingView.com
