- Crypto assets under management fell sharply, but BlackRock maintained its long-term revenue ambitions for digital asset businesses.
- The firm plans to expand tokenised investment products and enable investors to access them directly through digital wallets using stablecoins.
- Strong performance across ETFs and other investment businesses offset weaker crypto results, helping lift BlackRock’s share price.
BlackRock has reaffirmed its long-term commitment to digital assets and blockchain technology despite a sharp decline in the value of its crypto assets under management during the second quarter. The company said tokenisation, stablecoins and blockchain remain central to its future growth strategy.
Digital assets under management fell to approximately US$49 billion (AU$71.05 billion), representing a year-on-year decline of about 40% as lower Bitcoin and Ether prices weighed on valuations. Despite the downturn, the firm maintained its target of generating US$500 million (AU$725 million) in annual revenue from crypto-related businesses by 2030.
During the company’s earnings call, executives outlined plans to make traditional investment products directly accessible through digital wallets. The strategy includes expanding tokenised offerings such as Treasury funds, iShares exchange-traded funds and private market investments while enabling subscriptions and redemptions using stablecoins across multiple blockchains.
Related: Vanguard Signals Crypto Shift With New Digital Assets Leadership Role
Digital Wallets Become the Next Focus
BlackRock also said it manages around US$60 billion (AU$87 billion) in reserves for Circle, equivalent to roughly one-quarter of the US$300 billion (AU$435 billion) stablecoin market, as it seeks to strengthen its position within the digital asset ecosystem.
The broader business continued to perform strongly despite crypto’s weakness. BlackRock reported a record US$15.34 trillion (AU$22.24 trillion) in assets under management, with US$192 billion (AU$278.40 billion) in quarterly net inflows led by exchange-traded funds and other investment products.
Investors welcomed the financial results, sending BlackRock shares more than 7% higher following the earnings announcement, even as digital assets remained the company’s weakest-performing segment.
Related: JPMorgan Cuts Circle, Coinbase Targets Over USDC Deal Concerns
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