The on-chain revolution of TradFi: How BlackRock is reshaping the future of $150 billion in assets

Written by: Oliver, Mars Finance

Yesterday, global asset management giant BlackRock dropped a bombshell: it plans to put its money market fund, worth up to $150 billion, on-chain through "DLT Shares" (distributed ledger technology shares), using blockchain technology to record ownership. This news is like a boulder thrown into a calm lake, creating ripples in the integration of traditional finance (TradFi) and Web3. BlackRock manages $11.6 trillion in assets, and its CEO Larry Fink once boldly stated, "Tokenization is the future of finance." Now, this Wall Street giant is taking concrete steps to fulfill that promise, pushing the massive assets of traditional finance onto the blockchain stage. Public chains like Solana and Ethereum are gearing up to embrace the dividends of this transformation. What kind of revolution is this? How will it reshape the future of $150 billion in assets?

Pain points of traditional finance: Why is blockchain needed?

Money market funds are the cornerstone of traditional finance, known for their low risk and high liquidity. However, their operating mechanism resembles an old steam engine: reliable but inefficient. Redemptions and transfers require multiple intermediaries, trading times are limited to business days, and the record-keeping system is cumbersome and not transparent enough. Want to quickly liquidate investments? Sorry, please patiently wait for T+1 settlement. Want to view your positions in real-time? That relies on a lengthy reconciliation process.

The emergence of blockchain technology is like a cure. BlackRock's DLT Shares utilize Distributed Ledger Technology (DLT) to record ownership of funds on the blockchain, achieving near real-time transaction settlement, 24/7 asset access, and immutable transparent records. This not only enhances efficiency but also offers unprecedented convenience to investors. BlackRock's blockchain partner Securitize CEO Carlos Domingo stated, "On-chain assets solve the inefficiencies of traditional markets, providing 24/7 access for both institutions and retail investors." Imagine, future investors might be able to redeem funds via their phones at 2 AM without waiting for the bank to open. This is the disruptive promise of blockchain to traditional finance.

BlackRock's Web3 Journey: From BUIDL to DLT Shares

BlackRock is not a newcomer in the blockchain space. As early as 2023, it launched the BUIDL Fund (BlackRock USD Institutional Digital Liquidity Fund), which successfully tested the waters on Ethereum, focusing on tokenized U.S. Treasury assets. As of March 2025, BUIDL's asset size has reached $1.7 billion, with plans to exceed $2 billion in early April. More notably, the fund has expanded to seven blockchains, including Solana, Polygon, Aptos, Arbitrum, Optimism, and Avalanche, showcasing BlackRock's multi-chain strategic ambitions.

Today, DLT Shares is taking this vision to new heights. If the $150 billion money market fund successfully goes on-chain, it will become a milestone in the integration of traditional finance and Web3. According to Bloomberg ETF analyst Henry Jim, DLT Shares may pave the way for future digital currencies or on-chain derivatives through distribution by BNY Mellon. This is not just a technological upgrade, but an experiment to redefine the way assets are traded, held, and liquidated. As the heated discussions on platform X say: "BlackRock is not testing the waters of blockchain, but reshaping the rules of the game!"

BlackRock's application for "DLT Shares" (Distributed Ledger Technology Shares) aims to digitally transform its $150 billion money market fund through blockchain technology, utilizing Distributed Ledger Technology (DLT) to record ownership. This not only marks a deep integration of traditional finance (TradFi) with blockchain technology but also reveals BlackRock's strategic positioning in the global wave of financial digitalization.

1. What is DLT Shares?

DLT Shares is a new type of digital stock class designed by BlackRock for its money market funds, leveraging blockchain technology to record holder information and ownership. Its core features include:

Blockchain Record: Through distributed ledger technology, DLT Shares stores ownership information of fund shares on the blockchain, ensuring that records are transparent, tamper-proof, and can be traced in real time.

Efficient Trading: Compared to the T+1 settlement of traditional funds, DLT Shares supports near real-time redemptions and transfers, with trading hours extendable to 24/7, breaking the operational time constraints of traditional finance.

Compliant Distribution: DLT Shares are sold exclusively through BNY Mellon, emphasizing compliance and institutional trust. BNY Mellon, as the custodian and distributor, ensures seamless integration with the traditional financial system.

Potential Scalability: Bloomberg ETF analyst Henry Jim pointed out that DLT Shares may be preparing for the future applications of digital currencies or digital cash, suggesting that its functionalities could go beyond simple ownership records, involving on-chain payments or derivatives development.

In short, DLT Shares are the "on-chain" shares of traditional money market funds, enhancing efficiency, transparency, and accessibility through blockchain technology, while retaining the compliance framework of traditional finance.

2. The Significance of DLT Shares

The launch of DLT Shares is not only a technological innovation by BlackRock, but also has profound significance for traditional finance and the Web3 ecosystem:

A Leap in Efficiency and Transparency: The trading process of traditional money market funds involves multiple intermediaries, long settlement cycles, and high costs. DLT Shares utilizes the decentralized characteristics of blockchain to streamline processes and achieve instant settlement. According to Securitize CEO Carlos Domingo, on-chain assets can "address the inefficiencies of traditional markets," providing investors with convenient access around the clock.

Digital Transformation of Traditional Finance: BlackRock manages $11.6 trillion in assets, and its $150 billion fund going on-chain marks a full embrace of blockchain by traditional finance. This could inspire other asset management giants (such as Vanguard and State Street) to accelerate their blockchain initiatives and drive a paradigm shift in the industry.

Boosting the Web3 Ecosystem: DLT Shares may be deployed on public chains such as Solana and Ethereum, driving up transaction volumes and token demand for these blockchains. Community discussions on platform X indicate that Solana is favored for its high throughput (4000+ TPS) and low costs, while Ethereum maintains its lead with a 72% share of the tokenized government bond market.

Forward-looking layout of digital currency: Henry Jim's analysis points out that DLT Shares may be preparing for digital currencies or digital cash. This implies that BlackRock may explore integration with stablecoins (such as USDC) or central bank digital currencies (CBDC), paving the way for on-chain payments and financial derivatives.

3. BlackRock's Strategic Ambitions

Behind BlackRock's launch of DLT Shares, there are multiple layers of strategic intent:

Seizing the On-chain Financial Opportunity: BlackRock has been laying out its strategy in the blockchain field for years. Its BUIDL Fund (BlackRock USD Institutional Digital Liquidity Fund) has reached an asset scale of $1.7 billion since its launch on Ethereum in 2023, and is set to expand to seven blockchains including Solana by March 2025, with expectations to surpass $2 billion in early April. DLT Shares further expands this landscape, consolidating BlackRock's leadership position in the tokenized finance sector.

Attracting Institutional Funds: By utilizing highly compliant blockchains (such as partnering with Securitize) and reputable custodians (BNY Mellon), DLT Shares has lowered the entry threshold for institutional investors. The X post reflects the community's anticipation of an "influx of institutional funds," believing that this will drive up the prices of assets like SOL and ETH.

Exploring the Multi-Chain Ecosystem: BlackRock's multi-chain strategy (supporting Solana, Ethereum, Polygon, etc.) demonstrates its reluctance to bet on a single blockchain, instead opting for a decentralized approach to mitigate technical risks and reach a broader user base. This may drive the development of interoperability between public chains, such as cross-chain bridges or the establishment of unified standards.

Paving the way for digital currencies: The on-chain characteristics of DLT Shares give it the potential for integration with digital currencies. BlackRock may use this to test the application of blockchain in scenarios such as payments and settlements, accumulating experience for future collaboration with CBDCs or stablecoins. CNBC reported that BlackRock CEO Larry Fink believes tokenization will "revolutionize financial ownership," and DLT Shares are a manifestation of this vision.

Reduce operational costs: Blockchain technology can reduce intermediary steps and the costs of proxy voting. Fink stated at the Davos Forum that tokenization allows "every owner to receive voting notifications directly," reducing BlackRock's operational burden in ESG controversies.

Solana vs Ethereum: The On-Chain Arena of Traditional Finance

BlackRock's multi-chain strategy places Solana and Ethereum at the center of this revolution. The competition between the two is not only a technological battle but also a reflection of the future landscape of Web3.

Solana: The King of Speed and Cost

Solana has emerged with its incredible performance. With a transaction processing capability of over 4000 transactions per second (TPS) and transaction fees as low as a few cents, Solana has become a "darling" in the eyes of institutions. In March 2025, the BUIDL Fund expanded to Solana, leading to a significant increase in SOL prices. According to CoinDesk, Lily Liu, the chair of the Solana Foundation, stated: "The speed, low cost, and vibrant developer community of Solana make it an ideal platform for tokenized assets." Even more exciting, Solana's DeFi ecosystem surpassed Ethereum's transaction volume in early 2025, showcasing its potential in the on-chain finance sector.

The community sentiment on platform X is high, with many users believing that Solana's low cost and high efficiency will attract more traditional financial institutions. Some posts boldly predict: "If BlackRock launches a Solana ETF, the price of SOL will soar to the sky!" In fact, in April 2025, insiders at BlackRock hinted at the potential launch of ETFs for Solana and XRP, further igniting market expectations.

Ethereum: The Dominator of Security and Ecology

Despite Solana's rapid rise, Ethereum still firmly holds the throne of tokenized assets. According to data from RWA.xyz, by March 2025, the market size for tokenized U.S. Treasury bonds will reach $5 billion, with 72% ($3.6 billion) operating on Ethereum. 93% of BUIDL Fund's assets are still held on Ethereum, highlighting its irreplaceability in terms of security and liquidity. Moreover, Ethereum's Layer 2 solutions (such as Arbitrum and Optimism) have significantly enhanced its scalability, allowing it to maintain a leading position in the tokenization of high-value assets.

However, Ethereum is not without concerns. On platform X, some users warn that the concentration of Ethereum validators may pose a risk of centralization, which is particularly sensitive in the context of institutional focus on compliance. Nevertheless, Ethereum's mature ecosystem and large developer community remain its core advantages. Fortune Crypto points out: "The robustness of Ethereum and developer support make it still the preferred choice for high-value asset tokenization."

The Future of Competition

The competition between Solana and Ethereum is akin to a game of speed versus stability. Solana's low costs and high throughput make it more attractive for institutional trading, while Ethereum's ecosystem depth and Layer 2 scalability solidify its leadership position. If BlackRock's DLT Shares are deployed on either chain or support both simultaneously, it will undoubtedly further increase the demand for SOL and ETH. More interestingly, this competition may give rise to the demand for interoperability between public chains, such as the development of cross-chain bridges or unified standards, injecting new vitality into the Web3 ecosystem.

The Wave of RWA Tokenization: The Golden Era of Web3

BlackRock's DLT Shares are not only a symbol of its own transformation but also a catalyst for the RWA tokenization wave. According to data from RWA.xyz, the tokenized U.S. Treasury market has grown nearly 6 times in the past year, skyrocketing from $800 million to $5 billion, and the entire RWA market (including real estate, bonds, etc.) is nearing $20 billion. BlackRock's BUIDL Fund leads with a 41.1% market share, followed closely by Franklin Templeton's OnChain U.S. Government Money Fund (assets over $671 million) and Fidelity Investments' Ethereum tokenization fund (set to take effect in May 2025).

This wave goes far beyond government bonds. BlackRock's success may inspire more traditional assets to be tokenized, such as stocks, real estate, and even artwork. Imagine that in the future, investors might be able to purchase an apartment in Manhattan through blockchain, or hold tokenized shares of a Picasso painting. DeFi protocols like Aave and Curve have already begun exploring integration with tokenized assets, while stablecoins (such as USDC) might become the bridge for on-chain payments. Discussions on platform X are heated, with some exclaiming, "RWA is the killer application of Web3!" But others worry, "Will the influx of traditional financial institutions cause Web3 to lose its decentralization spirit?"

Opportunities and Challenges in 2025

Looking ahead to 2025, BlackRock's on-chain revolution opens up infinite possibilities for Web3. The rapid growth of the RWA market will attract more institutional players, with Goldman Sachs and JP Morgan already exploring tokenized bonds and credit products. On the policy front, the "Strategic Crypto Reserve" plan announced by Trump in March 2025 (covering Bitcoin, Ethereum, and Solana) offers a more favorable environment for blockchain applications, potentially further driving RWA tokenization.

However, the challenges cannot be ignored.

Regulatory uncertainty: The scrutiny of on-chain assets by the U.S. Securities and Exchange Commission (SEC) may intensify, especially regarding products involving permissioned or semi-decentralized chains. While BlackRock's compliance strategy with Securitize has earned it trust, tightening regulations may slow down the industry's progress.

Technical risks: Solana's network has experienced stability issues in the past. Although it has significantly improved by 2025, institutions still need to verify its reliability. Ethereum's Layer 2 has enhanced performance, but the complexity may increase development costs.

Community Disagreements: The Web3 community has polarized views on the entry of traditional financial institutions. On the X platform, some welcome BlackRock's funding and technical support, believing it will boost the value of on-chain assets; however, others are concerned that institutional compliance requirements may lead Web3 to tilt towards centralization.

Conclusion: The Dawn of the On-Chain Future

BlackRock's $150 billion on-chain plan is not just a technological experiment, but a transformation of financial paradigms. It combines the enormous scale of traditional finance with the innovative potential of blockchain, opening a new chapter for Web3. The speed of Solana and the robustness of Ethereum will shine brightly in this revolution, while the wave of RWA tokenization will reshape our understanding of assets. From Wall Street to blockchain, BlackRock is leading a journey that spans two worlds.

In 2025, the future on the blockchain is accelerating. Are you ready to get on board?