The On-Chain Revolution of TradFi: How BlackRock is Reshaping the Future of $150 Billion in Assets

Solana and Ethereum are gearing up for the dividends of this transformation.

Written by: Oliver, Mars Finance

Yesterday, global asset management giant BlackRock dropped a bombshell: it plans to put up to $150 billion of its money market funds on the chain through "DLT Shares" (distributed ledger technology stocks), using blockchain technology to record ownership. The news threw a boulder into a calm lake, causing ripples through the convergence of traditional finance (TradFi) and Web3. Larry Fink, the CEO of BlackRock, who manages $11.6 trillion in assets, once boasted, "Tokenization is the future of finance." Now, the Wall Street giant is delivering on his promise to push the huge assets of traditional finance onto the blockchain stage. Public chains such as Solana and Ethereum are gearing up to meet the dividends of this change. What kind of revolution is this? How will it reshape the future of $150 billion in assets?

Pain Points of Traditional Finance: Why Do We Need Blockchain?

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 weekdays, and the record-keeping system is cumbersome and not transparent enough. Want to quickly cash out? Sorry, please be patient for T+1 settlement. Want to view your holdings in real-time? That relies on a lengthy reconciliation process.

The emergence of blockchain technology is like an antidote. BlackRock's DLT Shares leverages distributed ledger technology (DLT) to record fund ownership on the blockchain, enabling near real-time transaction settlement, round-the-clock access to assets, and an immutable, transparent record. This not only improves efficiency, but also brings unprecedented convenience to investors. Carlos Domingo, CEO of BlackRock's blockchain partner, Securitize, said bluntly: "On-chain assets solve the inefficiencies of traditional markets and provide 24/7 access to institutional and retail investors." Imagine that future investors may be able to redeem their funds on their mobile phones at 2 a.m. without having to wait for banks to open. This is the subversive promise of blockchain to traditional finance.

BlackRock's Web3 Journey: From BUIDL to DLT Shares

BlackRock is not a newcomer in the blockchain field. As early as 2023, its BUIDL Fund (BlackRock USD Institutional Digital Liquidity Fund) successfully tested the waters on Ethereum, focusing on tokenized U.S. Treasury assets. As of March 2025, the assets of BUIDL have reached $1.7 billion, with plans to surpass $2 billion in early April. Even more notably, the fund has expanded to seven blockchains, including Solana, Polygon, Aptos, Arbitrum, Optimism, and Avalanche, showcasing BlackRock's ambition for a multi-chain strategy.

Today, DLT Shares is taking that vision to the next level. The $150 billion money market fund, if successfully launched on the chain, will become a milestone in the integration of traditional finance and Web3. According to Bloomberg ETF analyst Henry Jim, DLT Shares are distributed through BNY Mellon and could pave the way for a future of digital currencies or on-chain derivatives. This is not only a technological upgrade, but also an experiment that redefines the way assets are traded, held, and flowed. As the buzz on the X platform put it, "BlackRock is not testing the waters of blockchain, but reinventing the rules of the game!"

BlackRock's application for "DLT Shares" (Distributed Ledger Technology Shares) aims to digitize 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 digitization.

1. What is DLT Shares?

DLT Shares is a new type of digital stock category designed by BlackRock for its money market fund, relying on 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, immutable, and can be traced in real-time.
• Efficient Trading: Compared to the T+1 settlement of traditional funds, DLT Shares supports near real-time redemption and transfer, with trading hours extended to 24/7, breaking the operational time restrictions of traditional finance.
• Compliant Distribution: DLT Shares are sold exclusively through BNY Mellon, emphasizing compliance and institutional trust, with BNY Mellon serving as the custodian and distributor, ensuring seamless integration with the traditional financial system.
• Potential Scalability: Bloomberg ETF analyst Henry Jim pointed out that DLT Shares may be preparing for future applications of digital currencies or digital cash, suggesting that its functionality may extend beyond simple ownership records to include 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 maintaining 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 far-reaching significance for traditional finance and the Web3 ecosystem:

• Leap in Efficiency and Transparency: The trading process of traditional money market funds involves multiple intermediaries, long settlement cycles, and high costs. DLT Shares leverages the decentralized nature 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" and provide investors with convenient access around the clock.
• Digital transformation of traditional finance: BlackRock manages $11.6 trillion in assets, and its $150 billion on-chain fund launch marks the full embrace of blockchain in traditional finance. This may incentivize other asset management giants (e.g., Vanguard, State Street) to accelerate their blockchain deployment 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, increasing the transaction volume 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.
• Digital Currency Forward-Looking Layout: Henry Jim's analysis notes that DLT Shares may be preparing for digital currencies or digital cash. This means that BlackRock may explore integrations with stablecoins (such as USDC) or central bank digital currencies (CBDCs) to pave the way for on-chain payments and financial derivatives.

3. BlackRock's strategic ambitions

Behind BlackRock's launch of DLT Shares lies a multi-layered strategic intent:

• Seizing the On-chain Financial Opportunity: BlackRock has been investing in the blockchain space for years, and its BUIDL Fund (BlackRock USD Institutional Digital Liquidity Fund) has reached an asset size of $1.7 billion since its launch on Ethereum in 2023, and is expected to expand to seven blockchains including Solana by March 2025, with expectations to surpass $2 billion in early April. DLT Shares further broaden this landscape, solidifying BlackRock's leadership position in the tokenized finance sector.
• Attracting institutional funds: By utilizing compliant blockchains (such as in collaboration with Securitize) and authoritative custodians (BNY Mellon), DLT Shares have lowered the entry barriers for institutional investors. The X post reflects the community's expectation for an "influx of institutional funds," believing 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 unwillingness to bet on a single blockchain, but rather to reduce technical risks and cover a broader user base through a decentralized layout. This may promote the development of interoperability among 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 to integrate with digital currencies. BlackRock may use this to test the application of blockchain in payment, clearing, and other scenarios, accumulating experience for future cooperation with CBDCs or stablecoins. CNBC reports that BlackRock CEO Larry Fink believes tokenization will "completely change financial ownership," and DLT Shares is the embodiment of this vision.
• Reduce operational costs: Blockchain technology can reduce intermediaries and the cost of proxy voting. Fink stated at the Davos Forum that tokenization allows "each 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 puts 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 stands out for its amazing performance. With 4,000+ transactions per second (TPS) and transaction fees as low as a few cents, Solana has become a "sweet spot" in the eyes of institutions. In March 2025, the BUIDL fund expanded to Solana, triggering a significant increase in SOL prices. According to CoinDesk, Lily Liu, Chairman of the Solana Foundation, said, "Solana's speed, low cost, and active developer community make it an ideal platform to tokenize assets." What's even more exciting is that Solana's DeFi ecosystem has surpassed Ethereum's trading volume in early 2025, showing its potential in the on-chain financial space.

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 skyrocket!" In fact, in April 2025, insiders at BlackRock hinted at a possible launch of ETFs for Solana and XRP, further fueling market expectations.

Ethereum: The Dominator of Security and Ecology

Despite the strong momentum of Solana, Ethereum still firmly holds the throne of tokenized assets. According to data from RWA.xyz, by March 2025, the market size of tokenized U.S. Treasury bonds is expected to reach $5 billion, with 72% ($3.6 billion) operating on Ethereum. 93% of BUIDL fund assets are still held on Ethereum, highlighting its irreplaceability in terms of security and liquidity. Furthermore, Ethereum's Layer 2 solutions (such as Arbitrum and Optimism) have significantly enhanced its scalability, allowing it to maintain a lead 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 lead to centralization risks, 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 the support from developers make it still the preferred choice for tokenizing high-value assets."

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 reinforce its leadership position. If BlackRock's DLT Shares are deployed on one of the two chains or support both simultaneously, it will undoubtedly further increase the demand for SOL and ETH. More interestingly, this competition may spur 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 age of Web3

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

This wave is far from just government bonds. BlackRock's success may inspire more traditional assets to go on-chain, such as stocks, real estate, and even artworks. Imagine that 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 begun exploring integration with tokenized assets, while stablecoins (like USDC) could become the bridge for on-chain payments. Discussions on the X platform are heated, with some exclaiming, "RWA is the killer app for Web3!" But others worry, "Will the influx of traditional financial institutions cause Web3 to lose its decentralized soul?"

Opportunities and Challenges in 2025

Looking ahead to 2025, BlackRock's on-chain revolution unlocks infinite possibilities for Web3. The rapid growth of the RWA market will attract more institutions, with Goldman Sachs and JP Morgan already exploring tokenized bonds and credit products. On the policy front, Trump's "Strategic Crypto Reserve" plan announced in March 2025 (covering Bitcoin, Ethereum, and Solana) provides a friendlier environment for blockchain applications, which may further promote RWA tokenization.

However, the challenges cannot be ignored either:

• Regulatory Uncertainty: The scrutiny of on-chain assets by the U.S. Securities and Exchange Commission (SEC) may intensify, especially for products involving permissioned chains or semi-decentralized chains. While BlackRock's compliance strategy with Securitize has earned it trust, tightening regulations could slow down the industry's pace.
• Technical Risks: The Solana network has experienced stability issues in the past, and although significant improvements have been made by 2025, institutions still need to verify its reliability. Ethereum's Layer 2 has improved performance, but the complexity may increase development costs.
• Community Divergence: The Web3 community has polarized views on the entry of traditional financial institutions. On platform X, some welcome BlackRock's funding and technical support, believing it will increase the value of on-chain assets; however, others are concerned that the compliance requirements of institutions may lead to a centralization of Web3.

Conclusion: The Dawn of On-chain Future

BlackRock's $150 billion on-chain plan is not just a technical experiment, but a transformation of financial paradigms. It combines the vast 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 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 chain is accelerating. Are you ready to get on board?