On-chain data platform Token Terminal has set the stage for a potentially seismic shift in the crypto ecosystem, predicting that $10 trillion asset manager and exchange-traded fund (ETF) issuer BlackRock is preparing to launch its blockchain platform.

BlackRock’s Crypto Masterplan

Recent research from Token Terminal dives into BlackRock’s strategic entry into the crypto space and outlines the firm’s approach to this emerging digital asset class.

According to the platform’s findings, BlackRock has segmented the crypto asset class into three separate categories: crypto assets, including Bitcoin, stablecoins, and Real World Assets (RWAs), or tokenization, with the launch of its BUILDING fund on the Ethereum blockchain.

Further investments and involvement from BlackRock include ownership of the $21 billion iShares Bitcoin ETF assets under management (AuM), a stake in Circle, the issuer of the $34 billion USDC stablecoin, and a position in Securitize, the transfer agent for the BUIDL on-chain money market fund with $500 million in AuM.

When it comes to Bitcoin, BlackRock recognizes three inherent advantages: its status as an internet-native asset that is globally accessible, its efficiency in cross-border transactions, and the ability to invest in a safe and reliable currency. transactionsand its function as an inflation hedge due to limited supply.

By leveraging these advantages, BlackRock has begun to serve its diverse global client base by offering the IBIT and ETHA ETFs, creating a unique product space within its service portfolio. This move suggests a potential strategy to extend this productization approach to other major crypto assets, such as Sunny (SOL).

The $10 Trillion Blockchain?

But BlackRock’s ambitions extend beyond just offering crypto-linked investment vehicles. According to research from Token Terminal, the firm believes that blockchain technology can revolutionize capital markets by enabling 24/7 operations, improving transparency and access for investors, and reducing costs and speeding up settlement times.

Token Terminal’s forecast assumes BlackRock is ready to launch its blockchain infrastructure, drawing parallels to “Coinbase’s playbook” with its Base platform.

Such a strategic move would allow BlackRock to consolidate and streamline the administration of investments across multiple asset classes, representing as much as $10 trillion in assets under management.

According to Token Terminal, this potential blockchain ecosystem would function as a unified, global, interoperable, and transparent ledger, potentially “radically changing BlackRock’s operating framework” and setting a new standard in the financial industry.

However, the asset manager has not yet indicated whether it will launch its blockchain or other crypto asset-related products, besides ETFs and its BUIDL fund, on the Ethereum blockchain anytime soon.

At the time of writing, the total market cap of cryptocurrencies stands at $2 trillion, after falling to $1.69 trillion on Monday, August 5, a seven-month low.

Bitcoin, on the other hand, has broken through the $60,000 support level at the time of writing and is currently trading at $59,500. Over the past 24 hours, it has recorded losses of over 1%.

Main image of DALL-E, chart from TradingView.com