Tokenized ETFs are exchange-traded funds (ETFs) that have their shares represented as digital tokens on a blockchain. These tokens grant holders ownership of a portion of the underlying ETF, which tracks a specific index, commodity, or basket of assets. By existing on a blockchain, they aim to offer increased liquidity, faster settlement, and greater accessibility compared to traditional ETF shares. This innovation merges conventional investment vehicles with digital asset technology.
Context
The concept of tokenized ETFs is gaining traction as traditional finance seeks to leverage blockchain technology for efficiency and accessibility. Discussions often center on the regulatory hurdles and technical standards required for their widespread adoption. The ability to fractionalize ownership and enable 24/7 trading could significantly alter market structures. Future developments will likely depend on clearer regulatory frameworks and the establishment of robust infrastructure for digital asset securities.
The institutional asset manager's new platform leverages blockchain rails to abstract settlement friction, transforming trillions in traditional capital into a composable digital primitive.
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