Wall Street giant BlackRock met with the SEC’s Crypto Task Force to talk about including staking in crypto exchange-traded products (ETPs) and the tokenization of securities. The conversation could help promote broader support and involvement from m institutions in the crypto industry.
In the May. 9 task force memo, BlackRock showed interest in discussing how staking should be treated. The discussion includes the potential for offering ETPs that support staking. The company has previously said that while Ether exchange-traded funds are successful, not ideal without staking.
Other crypto ETF issuers have the same thoughts. On Feb. 15, the New York Stock Exchange proposed a rule change to allow staking services for Grayscale’s Ether ETFs. In April, the SEC postponed its decision on whether to approve or reject the change.
BlackRock eyes crypto tokenization future
BlackRock and Grayscale are leading the market with the largest Ether ETFs by market capitalization, according to Sosovalue. Many blockchains use proof-of-stake systems that allow users to lock their native coins in exchange for rewards.
If the SEC approves staking for Ether ETFs, it could lead to similar requests for altcoins, including Solana, to have their own ETFs. BlackRock also discussed the “tokenization of securities under the federal securities regulatory framework.”
Securities are traditional financial instruments, like stocks and bonds, where investors can earn a financial return. Tokenizing securities provides benefits like faster settlement times, lower costs compared to traditional finance systems, and the potential to trade 24/7.
BlackRock already launched a tokenized fund for U.S. federal debt called BUIDL, the largest with a market cap of $2.9 billion. Competing products include Franklin Templeton’s BENJI fund.
Robinhood is also exploring the tokenization of securities. The company is reportedly working on a blockchain that would allow retail investors in Europe to trade U.S. stocks.
