BlackRock Engages SEC on Staking and Tokenization to Reshape Crypto ETFs

BlackRock, the world’s largest asset manager, is deepening its exploration into crypto territory with a new round of discussions held with the U.S. Securities and Exchange Commission’s (SEC) Crypto Task Force. According to a May 9 memo , the meeting focused on two pivotal areas of digital finance: integrating staking features into exchange-traded products (ETPs) and the tokenization of traditional securities. The conversation, which marks a critical point in BlackRock’s crypto engagement strategy, centered on how staking could be incorporated into regulated investment vehicles. “Perspectives on treatment of staking” were on the agenda, with particular emphasis on how such capabilities could enhance the utility and yield of Ether ETFs. BlackRock has previously stated that Ethereum-based ETFs remain incomplete without staking — a sentiment echoed by competitors like Grayscale. In February, the New York Stock Exchange even proposed a rule change to support staking services in Grayscale’s spot Ether ETF . While the SEC has so far deferred judgment, the growing institutional chorus in favor of staking functionality within ETFs is hard to ignore. Staking Could Be a Game Changer for ETF Innovation If the SEC eventually gives the green light, Ether ETFs could evolve from mere price trackers to income-generating instruments — a significant leap for investors seeking more than just exposure. Beyond Ethereum, the move could also open the doors for similar products tied to Solana and other proof-of-stake assets, potentially reshaping the competitive landscape of crypto investment vehicles. But BlackRock’s ambitions don’t stop there. The asset management behemoth also used the meeting to address the broader implications of tokenizing securities — essentially placing traditional assets like stocks and bonds on a blockchain. While the concept has been discussed for years, BlackRock appears ready to operationalize it. Already, the firm’s tokenized U.S. Treasury fund, BUIDL, boasts a market cap of $2.9 billion — the largest of its kind. That puts it ahead of similar efforts like Franklin Templeton’s BENJI fund, both of which aim to digitize finance by enabling 24/7 trading, lower costs, and near-instant settlement. Traditional Finance Inches Toward a Blockchain Future Other firms are also eyeing the tokenization trend. For instance, Robinhood is reportedly building a blockchain to allow retail investors in Europe to access U.S. securities around the clock — a move that mirrors BlackRock’s vision of a borderless, decentralized financial future. While regulatory hurdles remain, the writing is on the wall: Wall Street’s biggest players are betting on blockchain, and the SEC may soon be forced to catch up. The post BlackRock Engages SEC on Staking and Tokenization to Reshape Crypto ETFs appeared first on TheCoinrise.com .

Source: The Coin Rise