Justin Harper
When it comes to crypto and digital assets, BlackRock is already a giant in the sector. The world’s largest fund manager has already amassed $70 billion in one crypto fund – the BlackRock iShares Bitcoin Trust ETF.
But it also has ambitions in the tokenization space and stablecoins, which have become buzzwords in this region this year. That’s according to Tony Ashraf, who is BlackRock’s Global Head of Digital Asset Transformation and has just relocated to the UAE.
In this fast-paced world of digital assets, BlackRock is charting a strategic course that bridges traditional finance (tradfi) with emerging technologies from the Web3 space. The firm’s approach focuses on three key areas: crypto assets, stablecoins, and tokenization.
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Tony Ashraf wears two hats at BlackRock. He is also Head of Technology and Operations for the Middle East, which sees Ashraf supporting the firm’s ambitious growth aspirations in the region.
“We’re building our presence here strategically,” Ashraf explains. “Much of the work involves creating infrastructure tailored to the evolving needs of the region, particularly as capital markets develop in places like Saudi Arabia.” Hiring locally and expanding BlackRock’s physical office presence are central to this regional growth strategy.
Crypto strategy
However, Ashraf’s other role – leading digital asset transformation – was the topic of today’s conversation. His journey began when he ran derivatives at BlackRock, prompting him to explore blockchain solutions to industry-wide inefficiencies. “Blockchain led me to tokenization, and from there to digital assets,” he says, reflecting on the three years he’s formally spent immersed in this transformation role.
BlackRock’s crypto integration began with its Aladdin platform, breaking entry barriers for institutions wanting to manage digital assets seamlessly alongside traditional investments. BlackRock’s notable partnership with Coinbase underscores this commitment.
Stablecoins
Stablecoins represent another significant pillar. Ashraf notes BlackRock’s longstanding partnership with Circle, issuer of the USDC stablecoin, and highlights the growing use cases for stablecoins beyond crypto transactions, particularly for SMEs and cross-border payments. Yet, he cautions against the proliferation of too many stablecoins, advocating for consolidation around a few trusted, well-regulated coins.
Tokenization
Ashraf sees tokenization as transformative, particularly where traditional infrastructure remains underdeveloped. BlackRock successfully launched its on-chain money market fund BUIDL in March last year, which is now nearing $3 billion in assets under management. This product particularly appeals to Web3 firms seeking yield without moving assets off-chain.
Looking ahead, Ashraf predicts tokenization will evolve most rapidly within product distribution. He envisions a future where crypto exchanges provide users seamless access to traditional financial products like equities or ETFs through tokenized forms, satisfying both institutional and retail demands.
With the Middle East’s ambitious regulatory landscape and burgeoning Web3 ecosystem, Ashraf believes the region is perfectly positioned to lead this digital finance transformation.
And as for its $70 billion Bitcoin ETF. It just keeps on growing.
Justin Harper is a freelance business, finance and crypto writer and editor who has worked for the BBC, FT Business, Daily Mail and Campaign Middle East during a career spanning more than 25 years.
