BlackRock Might Launch Its Own Blockchain, Signaling a TradFi Transition Toward Decentralized Solutions

BlackRock organizes its cryptocurrency holdings into three categories: crypto assets like Bitcoin (BTC), stablecoins like USDC, and tokenized assets

BlackRock (NYSE:BLK) is reportedly organizing its cryptocurrency holdings into three categories: crypto assets such as Bitcoin (CRYPTO: BTC), stablecoins like USDC, and tokenized assets like BUI.

What Happened: The breakdown is part of an analysis by on-chain data platform Token Terminal on BlackRock’s crypto strategy.

The asset management giant is said to be bullish on Bitcoin for three key benefits: It is internet-based, making it accessible for users around the world.

Bitcoin is also said to be efficient for international transactions and its capped supply makes it a hedge against inflation.

Token Terminal also highlighted BlackRock’s iShares Bitcoin ETF (NYSE:IBIT) and predicted that the firm will eventually create similar products for other major cryptocurrencies.

While BlackRock has already done this for Ethereum (CRYPTO: ETH), the chances of a Solana (CRYPTO: SOL) ETF appear to be slim for now.

However, Token Terminal noted that BlackRock is enthusiastic about the potential of blockchain technology to improve capital markets.

The benefits seen by the firm include continuous market operations, increased transparency and investor access, lower fees, and faster settlements.

This analysis suggests that BlackRock may even launch its own blockchain, in a move that would be similar to Coinbase (NASDAQ:COIN) introducing Base L2.

If BlackRock were to launch its own blockchain, it would be a significant shift in traditional finance, signaling a move toward decentralized solutions.

Coinbase, for instance, is evolving into a Web3 gateway with Base, and BlackRock's blockchain venture could propel it from being a conventional asset manager to a leading player in the digital asset space.

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