BlackRock's Tokenized Fund 'Brings Legitimacy' to Public Blockchains Like Ethereum, Bernstein Says

BlackRock's planned tokenized fund launch "brings legitimacy" to public smart contract chains like Ethereum ETH/USD, according to analysts at research and brokerage firm Bernstein. The world's largest asset manager's choice to use the public Ethereum blockchain instead of private chains, like JPMorgan's Onyx, broadens interoperability and programmability in a space so far only seen as "retail casinos" Gautam Chhugani and Mahika Sapra wrote in a note to clients on Tuesday. "Tokenised fund redemption could be on-chain with stablecoins (e.g USDC) integration. New asset classes (bonds, equities, fx stablecoins) could lead to interoperability between asset classes on-chain and scope for further programmability based on deal contract conditions" they said. "The plumbing built for retail speculation starts to drive institutional utility."

Read the full story at The Block.