BlackRock's Ethereum Bet Faces Chain Competition as Tokenization Market Evolves

BlackRock's Ethereum-centric tokenization vision faces a paradox: as institutional adoption grows, so does the threat of market-share erosion from rollups and multi-chain strategies.

The asset manager's 2026 Thematic Outlook positions Ethereum as a "toll road" for tokenization, with over 65% of tokenized assets on the network as of January 5, 2026. Yet RWA.xyz data from late January 2026 reveals Ethereum's tokenized real-world asset share at 59.84% ($12.8B total value), with $13.43B excluding stablecoins—highlighting potential volatility in its dominance.

L2BEAT's rollup figures further complicate the thesis: Arbitrum One secures $17.52B, Base $12.94B, and OP Mainnet $2.33B in Ethereum-secured assets.

This decentralization of infrastructure challenges BlackRock's "toll road" model, which relies on concentrated fee capture. Meanwhile, the firm's BUIDL tokenized fund operates across seven blockchains via Wormhole, signaling a strategic pivot to mitigate platform concentration risk.

Citi's stablecoin velocity modeling—projecting $100T–$200T in transaction activity by 2030—adds another layer of complexity. If stablecoin velocity reaches 50x, Ethereum's ability to capture fees could be diluted as multi-chain tokenization gains traction.

BlackRock's internal adjustments to "strip out inorganic activity" from stablecoin volume, as noted in Visa Onchain Analytics reports, suggest the firm is preparing for this dynamic.

Look, the World Economic Forum's neutral stance on blockchain frameworks—emphasizing tokenization benefits without endorsing a single chain—reflects the industry's reality. As Ethereum's share drifts, BlackRock's "toll road" strategy must balance infrastructure dominance with the inevitability of multi-chain competition. The coming months will test whether institutional-grade tokenization can coexist with decentralized rollup ecosystems.

⚠️ LEGAL DISCLAIMER: This article is for informational purposes only and does not constitute financial or investment advice.