Anika Begay
On-chain data platform Token Terminal has set the stage for a potentially seismic shift in the cryptocurrency 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 Cryptocurrency Masterplan
Recent research Token Terminal delves into BlackRock’s strategic entry into the cryptocurrency space, outlining the firm’s approach to the emerging digital asset class.
According to the platform’s findings, BlackRock has divided the cryptocurrency class into three distinct categories: cryptocurrencies, including Bitcoin, stablecoins and Real World Assets (RWA), or tokenization, with the launch of its BUILD fund on the Ethereum blockchain.
Further investments and involvements by BlackRock include ownership of the iShares Bitcoin ETF, $21 billion in business under management (AuM), a stake in Circle, the issuer of the USDC stablecoin with a $34 billion supply, and a position in Securitize, the transfer agent for the on-chain money market fund BUIDL with $500 million in AuM.
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 limited supply.
Leveraging these advantages, BlackRock has begun catering to its diverse global client base by offering IBIT and ETHA ETFs, carving out a unique product space within its service portfolio. This move suggests a potential strategy to extend this production approach to other major crypto assets such as Solana (SOL).
The $10 Trillion Blockchain?
But BlackRock’s ambitions go beyond simply offering crypto-linked investment vehicles. According to research from Token Terminal, the company believes that Blockchain Technology It can revolutionize capital markets by enabling 24/7 trading, improving transparency and investor access, reducing fees while accelerating settlement times.
Token Terminal’s forecast assumes BlackRock is ready to launch its own blockchain infrastructure, drawing parallels to the “Coinbase playbook” with its Base platform.
Such a strategic move would allow BlackRock to consolidate and simplify its record-keeping 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 operating framework” and setting a new standard in the financial industry.
However, the asset manager has not yet indicated whether it will soon launch its blockchain or other cryptocurrency-related products, beyond ETFs and its BUIDL fund, on the Ethereum blockchain.
At the time of writing, the total value of the cryptocurrency market capitalization stands at $2 trillion, after falling to $1.69 trillion on Monday, August 5, a 7-month low.
On the other hand, at the time of writing, Bitcoin has lost the $60,000 support level and is currently trading at $59,500, recording losses of more than 1% in the last 24 hours.
Featured image from DALL-E, chart from TradingView.com
