According to Blockworks, BlackRock, the world's largest asset manager, is set to further its involvement in the tokenization sector. This follows its lead in a $47 million funding round for Securitize, a firm specializing in the tokenization of physical and traditional financial assets. The two companies have previously collaborated, with BlackRock launching its first tokenized fund, the BlackRock USD Institutional Digital Liquidity Fund, in March. This fund offers an alternative method for earning US dollar yields and is available to qualified investors via Securitize Markets.

Tokenization has been gaining traction among fintech firms and traditional finance giants, who note that blockchain technology can enhance transparency and reduce costs. BlackRock's CEO, Larry Fink, has referred to tokenized securities as 'the next generation for markets.' Joseph Chalom, BlackRock’s global head of strategic ecosystem partnerships, echoed this sentiment, stating that tokenization could significantly transform capital markets infrastructure. Chalom, who has now joined Securitize's board of directors, described the investment in Securitize as a step forward in BlackRock's digital assets strategy.

Other participants in the funding round included Hamilton Lane, ParaFi Capital, and Tradeweb Markets. Hamilton Lane, a private markets investment firm, had earlier in January 2023 made one of its equity funds available through a Securitize feeder fund tokenized on Polygon.

Global investment giant BlackRock has received a commercial license to operate in Abu Dhabi, marking a significant milestone in its Middle Eastern expansion strategy. This development comes hot on the heels of its approval to establish a headquarters in Riyadh, Saudi Arabia, positioning the firm as a key player in the region's financial landscape.

📍 Key Highlights:

Abu Dhabi Approval: BlackRock will focus on sovereign wealth funds, wealth managers, and investment vehicles in the region through its Abu Dhabi office.

Saudi Expansion: Just last month, BlackRock gained approval to open a Riyadh headquarters, fueled by $5 billion from Saudi Arabia’s Public Investment Fund (PIF) for Middle Eastern investments.

Strategic Partnerships: BlackRock collaborates with Sheikh Tahnoon bin Zayed Al Nahyan to develop data warehouses and energy infrastructure, strengthening ties with the UAE.

🌍 Why Abu Dhabi?

A growing global financial center with proactive government policies.

Commitment to sustainability and AI infrastructure development.

Over $1 trillion in sovereign wealth capital, making it an investment hotspot.

💡 What’s Next? BlackRock’s dual presence in Abu Dhabi and Riyadh signifies its commitment to tapping into the Middle East's vast financial opportunities. With its focus on private markets and AI-driven infrastructure, the firm is set to drive innovation and growth in one of the most capital-rich regions in the world.

Stay tuned as BlackRock shapes the future of Middle Eastern markets, competing head-to-head with Dubai to dominate the region’s financial hub status.