Traditional financial institutions are showing more interest than ever in tokenizing assets on public blockchains, according to a former Grayscale executive. Celisa Morin, VP of Platform Distribution at Grayscale, said the narrative among a new BlackRock-led TradFi organization is that more firms will seek to tokenize assets on public chains rather than private ones.

"We were seeing this narrative a few years ago. But now, I think public blockchains are much more favored," Morin said. said. Morin explained that it would make sense for major traditional financial institutions to follow in the footsteps of BlackRock, which launched a $100 million tokenized 'BUIDL' fund on the Ethereum network.

The BUIDL fund currently holds $288 million in assets, according to Dune Analytics data. However, BlackRock's move to launch a fund in Ethereum was not without controversy, with the asset manager's on-chain wallet quickly attracting ridicule from various crypto enthusiasts.

“If BlackRock had made these choices, I don't know why the rest of the team would be left behind,” Morin said. said. Morin described Franklin Templeton's move to launch a tokenized money market fund on the Ethereum layer-2 network Polygon in October last year as "prescient."

It seems unlikely that the Ethereum ETF will be approved in May. Morin was less enthusiastic about spot Ether (ETH) exchange-traded funds (ETFs), saying they were unlikely to be approved in May.

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