{"id":11913,"date":"2025-05-10T01:24:29","date_gmt":"2025-05-09T23:24:29","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=11913"},"modified":"2025-05-10T01:24:29","modified_gmt":"2025-05-09T23:24:29","slug":"blackrocks-crypto-team-explores-etp-staking-and-tokenization-strategies","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/05\/10\/blackrocks-crypto-team-explores-etp-staking-and-tokenization-strategies\/","title":{"rendered":"BlackRock’s Crypto Team Explores ETP Staking and Tokenization Strategies"},"content":{"rendered":"

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Wall Street behemoth BlackRock convened with the Securities and Exchange Commission (SEC) Crypto Task Force to deliberate on staking within cryptocurrency exchange-traded products (ETPs) and the tokenization of securities. This dialogue could enhance institutional engagement in the cryptocurrency sector.<\/p>\n

As per a May 9 memorandum<\/a> released by the task force, BlackRock aimed to \u201c[d]iscuss viewpoints on the treatment of staking, comprising considerations for enabling ETPs with staking functionalities.\u201d The firm has previously remarked that Ether (ETH<\/a>) exchange-traded funds, while successful, are not as optimal without staking<\/a>.<\/p>\n

Other cryptocurrency ETF issuers hold a similar opinion. On Feb. 15, the New York Stock Exchange put forth a proposal<\/a> for a rule amendment to incorporate staking services for Grayscale\u2019s spot Ether ETFs. In April, the SEC postponed a decision<\/a> on whether to approve or reject the rule amendment. BlackRock and Grayscale lead in managing the largest Ether ETFs by market capitalization, according<\/a> to Sosovalue.<\/p>\n

Ethereum ETFs as of May 8. Source: <\/em>Sosovalue<\/em><\/a><\/figcaption><\/figure>\n

Numerous blockchains depend on proof-of-stake consensus models that enable users to lock their native currencies for rewards. A likely SEC approval of staking for Ether ETFs might spur future requests among alternative coins, including Solana (SOL<\/a>) ETFs.<\/p>\n

Tokenization on the agenda<\/h2>\n

BlackRock also addressed the \u201ctokenization of securities within the federal securities regulatory framework.\u201d Securities are conventional financial assets where investors anticipate financial returns, such as bonds and stocks. Tokenizing securities offers several advantages, including quicker settlement times, reduced costs compared to traditional financial infrastructure, and round-the-clock markets.<\/p>\n

BlackRock already provides a US federal debt tokenized fund named BUIDL, the largest fund<\/a> with a market valuation of $2.9 billion. Competing options include Franklin Templeton’s BENJI fund.<\/p>\n

Brokerage firm Robinhood is also investigating the tokenization of securities. The company is reportedly developing a blockchain<\/a> that would permit retail investors in Europe to trade US securities like stocks.<\/p>\n

Magazine: Ethereum is overshadowing the competition in the $16.1T TradFi tokenization race<\/strong><\/em><\/a><\/p>\n