BlackRock meets with SEC Crypto Task Force to discuss staking and options on crypto ETFs
The post BlackRock meets with SEC Crypto Task Force to discuss staking and options on crypto ETFs appeared on BitcoinEthereumNews.com.
Wall Street powerhouse BlackRock held a meeting with the U.S. Securities and Exchange Commission’s (SEC) Crypto Task Force to discuss staking in crypto exchange-traded products (ETPs) and tokenization of traditional securities. The company said it wanted to discuss how staking should be treated, including the possibility of allowing exchange-traded products (ETPs) to offer staking features. The company noted that while Ether ETFs have been successful, they are incomplete without the ability to stake. BlackRock’s current Ether ETF filing does not describe staking. However, the firm also believes that Ethereum ETFs are missing out on the full value without staking. During the meeting, the asset manager said it wants to offer Ether ETFs that can engage in staking so investors can earn additional yield. Other leading crypto ETF players, such as Grayscale and some regulators, agree. Grayscale also filed for rule changes to bring staking to its Ether ETF. In April, the SEC postponed its decision on Grayscale’s proposal. That demonstrates how carefully the regulator is tiptoeing into staking features. Even then, if the SEC permits staking in Ether ETFs, it could pave the way for similar ETFs based on other cryptocurrencies that also use proof-of-stake, such as Solana or Cardano. BlackRock explores blockchain tokenization of traditional assets In addition to staking, BlackRock spoke about tokenizing products from the traditional world of finance — such as bonds, real estate, or other assets. This entails converting assets such as bonds or stocks to blockchain-based tokens. Tokenization is a hot topic in finance. It has several advantages, like shorter settlement times, lower fees, and the ability to trade around the clock (unlike traditional markets, which close on weekends and holidays). The asset manager already dominates this field with its digital fund “BUIDL.” This fund is known as a tokenized or STO (security token offering)…
