BlackRock identified Ethereum as the foundational network for institutional tokenization in its 2026 Thematic Outlook. The firm paired the assessment with concrete, high-value initiatives that underscore a strategic shift toward issuing real‑world assets on programmable blockchains.
BlackRock has moved beyond analysis to operational products that run on Ethereum. Its BlackRock USD Institutional Digital Liquidity Fund (BUIDL), launched in partnership with Securitize, has scaled rapidly and sits at the center of that effort.
BlackRock framed those numbers as validation of a phased tokenization strategy: start with money‑market and fund products, then expand to broader asset classes — stocks, bonds and ultimately real estate. The firm cited Ethereum’s security, developer ecosystem and existing institutional integrations as reasons for the preference.
Market implications and outlook
The institutional momentum on Ethereum extends beyond BlackRock. The approval of spot Bitcoin and Ether ETPs in 2024 already drew substantial institutional inflows, and other market participants have announced tokenized products on Ethereum, including tokenized CLOs and ETF issuers exploring share tokenization. These moves signal that traditional financial firms are treating programmable settlement and on‑chain custody as operational tools rather than experiments.
Projections remain sizable and forward‑looking: Standard Chartered estimates tokenized real‑world assets could reach $2 trillion by 2028, while broader industry forecasts put the total tokenized market near $11 trillion by 2030. If issuance, custody and secondary liquidity scale as forecast, Ethereum‑based tokenization will become a material plumbing layer for institutional finance.
For investors and market infrastructure providers, the coming years will test two linked assumptions: that Ethereum can sustain institutional security and finality at scale, and that regulatory frameworks will permit large‑scale issuance and cross‑border settlement. Market participants will therefore monitor product rollouts, custody integrations and regulatory developments through 2028 and into 2030 as the primary gauges of whether the tokenization thesis can move from piloting to mainstream adoption.
