Source: beincrypto
Compiled by: Blockchain Knight
On-chain data platform Token Terminal said BlackRock may launch its own blockchain, similar to Coinbase's L2 network Base.
The assumption was made after a survey of the various types of assets held by the asset management company.
BlackRock divides its crypto assets into three categories: crypto assets such as BTC, stablecoins such as USDC, and tokenized assets such as BUIDL.
BlackRock reportedly believes that BTC has three distinct advantages as an asset.
First, BTC is an Internet native asset that can be used globally. Second, BTC is also very efficient in cross-border transactions. Finally, BTC's fixed supply cap makes it a tool to hedge against inflation.
Token Terminal highlighted the role of BlackRock’s iShares BTC ETF and expects the company to productize all major crypto assets in a similar manner.
It’s worth noting that while BlackRock has already done this with Ethereum, the prospects for a Solana ETF remain elusive at this point.
Still, the on-chain data platform demonstrates BlackRock’s belief in the potential of blockchain technology to improve capital markets. Token Terminal cites the benefits of 24/7 capital markets, increased transparency and investor access, lower fees and faster settlements.
The investigation led Token Terminal to conclude that the company could launch its own blockchain, much like Coinbase did with BaseL2.
Token Terminal concluded: “We believe that BlackRock will eventually launch its own blockchain, following a similar approach used by Coinbase on Base. This will allow BlackRock to centrally record all of its holdings into a single, global, interoperable and transparent ledger.”
BlackRock’s introduction of blockchain would mark a major shift in the traditional finance (TradFi) sector, heralding a move towards decentralized solutions.
Similar to Coinbase’s transformation into a Web3 gateway through Base, BlackRock’s blockchain initiatives could elevate the company from a traditional asset manager to a leader in the digital asset space.
Whether BlackRock will launch its own blockchain remains unknown, as the company did not immediately respond to BeInCrypto’s request for comment. However, such a move would require clear regulations.
One user X commented: “As much as we want to see this, it simply won’t happen in the short term unless regulations and compliance are clear. This is for compliance reasons. It’s important to note that the entire blockchain ecosystem is huge, but how will they solve compliance issues?”
Using blockchain technology, BlackRock can streamline operations, reduce costs, increase transparency and enhance security across its wide range of financial products and services.
This approach has the potential to revolutionize trading and create a more efficient and secure financial ecosystem.
In addition, this venture will also bring new opportunities for its customers and investors to access a variety of digital assets. They will also be exposed to more seamless and user-friendly investment opportunities.
This will democratize access to financial products and solidify BlackRock’s position as a leader in digital asset management.
With the success of the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), the company has set a new standard in the tokenization of real-world assets (RWAs).
BUIDL recently became the largest tokenized fund, demonstrating the development and increasing integration of blockchain technology in the traditional financial (TradFi) sector.
While overall demand for such tokenized products remains in its infancy, specific market segments continue to show encouraging interest.
BlackRock's BUIDL and Franklin Templeton's BENJI illustrate this point.
