Ethereum Gains Momentum as BlackRock Launches $150B Tokenized Treasury Fund
Ethereum is making headlines again as financial giant BlackRock takes a major step into blockchain finance by tokenizing its $150 billion Treasury Trust Fund. The move signals growing institutional confidence in Ethereum’s ecosystem, reinforcing its position as the leading platform for real-world asset (RWA) tokenization.
BlackRock Embraces Ethereum for Treasury Tokenization
According to an April 28 prospectus filed with the U.S. Securities and Exchange Commission, BlackRock plans to introduce a new “DLT Shares” asset class for its Treasury Trust Fund, enabling ownership to be tracked on-chain via BNY Mellon. This tokenization effort will leverage Ethereum’s battle-tested blockchain, reinforcing its dominance in the RWA space.
Former Ethereum developer Eric Conner commented on X, “Ethereum just scored a monster win,” highlighting the significance of BlackRock’s decision.
BlackRock is no stranger to Ethereum. It previously launched the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) on Ethereum in partnership with Securitize. The fund allows qualified investors to earn yield through tokenized U.S. Treasury securities. As of now, 93% of the BUIDL fund’s $2.34 billion in assets is held on Ethereum, according to data from rwa.xyz.
Ethereum: The Institutional Settlement Layer
“Institutions follow deep liquidity, credible neutrality, and battle-tested security,” said Leon Waidmann, Head of Research at Onchain Foundation. “ETH is already their settlement layer.”
Crypto researcher “CryptoGoos” added that Ethereum is “extremely undervalued” and emphasized that BlackRock’s continued use of the blockchain is a bet on ETH being the dominant infrastructure for asset tokenization.
BlackRock CEO Larry Fink echoed this sentiment in March, declaring:
“Tokenization will revolutionize investing… Transactions that take days could clear in seconds.”
Ethereum currently dominates the tokenized asset market with 56% market share and $6.2 billion in tokenized assets on-chain (excluding stablecoins), as reported by rwa.xyz.
ETH Price Lags Despite Institutional Support
Despite this massive vote of confidence from BlackRock, ETH prices remain under pressure, still hovering below $1,800. The token is down roughly 63% from its 2021 peak and nearly 50% year-to-date.
However, that hasn’t stopped institutions from accumulating. BlackRock’s proposed spot Ethereum ETF (ETHA) has already scooped up $162 million worth of ETH over the past four trading days, signaling growing institutional interest in Ethereum at a discount.
