BlackRock Supports Ethereum as Tokenization Backbone Amidst Market Changes

TLDR

• Ethereum’s market share for tokenized assets drops slightly below 65% in January 2026.
• Ethereum faces growing competition from other chains and Layer 2 solutions.
• BlackRock backs Ethereum’s role as a tokenization “toll road” despite market share loss.
• Layer 2 rollups like Arbitrum and Base could affect Ethereum’s fee capture model.

BlackRock’s 2026 outlook highlights Ethereum’s key role in tokenization, positioning it as a “toll road” for blockchain transactions. With over 65% of tokenized assets still on Ethereum, the network has been the backbone for real-world asset tokenization. However, recent data shows Ethereum’s market share is slipping, as other chains and Layer 2 solutions like Arbitrum and Base rise. BlackRock still backs Ethereum, but the landscape is shifting.

BlackRock Backs Ethereum Gatekeeping Tokenization Despite Market Share Decline

In its 2026 Thematic Outlook, BlackRock has positioned Ethereum as a crucial player in the tokenization of real-world assets (RWAs), calling it a potential “toll road” for blockchain-based transactions. As of early January 2026, BlackRock reported that over 65% of tokenized assets were on Ethereum, a figure that highlights the blockchain’s dominant role in the space.

However, recent data from late January reveals that Ethereum’s market share has drifted slightly below the 65% mark, sparking questions about whether the network can maintain its position.

Ethereum’s central role in tokenization is largely based on its infrastructure as a base layer. Tokenized assets, such as real estate, stocks, and bonds, rely on Ethereum for issuance, settlement, and fee payment. Ethereum’s scalability challenges, however, are being increasingly addressed by Layer 2 solutions like Arbitrum and Base, which handle day-to-day fees and transactions while still securing assets under Ethereum’s umbrella.

As the market for tokenized assets expands to other blockchain networks, Ethereum’s role as the sole gatekeeper is being threatened, raising doubts about whether it can continue to dominate the space.

Ethereum’s Market Share Shrinks Amid Expanding Blockchain Ecosystem

The tokenization of assets on blockchain networks has seen exponential growth, with Ethereum traditionally leading this trend. However, data from sources like RWA.xyz indicates that Ethereum’s share of tokenized RWAs has dropped to 59.84% as of January 2026.

This shift is a result of several factors, including the rise of alternative blockchains and the adoption of Layer 2 rollups. Ethereum still leads in tokenized asset value, but the expansion of other blockchains is starting to erode its dominance. BlackRock’s earlier estimate of 65% market share now appears to be a snapshot, showing how quickly the ecosystem can change.

These shifts suggest that Ethereum’s dominance is not as secure as it once was. Other blockchains, such as Solana and Avalanche, are increasingly becoming attractive alternatives for asset issuance and settlement. The evolving competitive landscape poses a challenge to Ethereum’s long-standing role as the primary network for tokenized assets. Yet, Ethereum’s ability to handle the security and settlement of large-scale assets continues to make it a valuable player in the sector.

Layer 2 Solutions Complicate Ethereum’s “Toll Road” Thesis

Ethereum’s position as a “toll road” in the tokenization space faces further complexity with the rise of Layer 2 rollups. Rollups like Arbitrum and Base provide solutions to Ethereum’s scalability issues by moving much of the transaction load off the main chain while still leveraging Ethereum’s security and decentralization.

These rollups are growing rapidly, with billions in value secured through their platforms. As rollups manage day-to-day transactions, they may reduce Ethereum’s ability to capture transaction fees, which undermines its role as a centralized revenue generator for tokenization.

The development of Layer 2 solutions also creates a more fragmented blockchain ecosystem. Tokenized assets can now be issued and settled across various networks, diminishing the need for users to interact directly with Ethereum for every transaction. While Ethereum remains a key player in asset issuance and settlement security, its share of the fees generated by tokenized transactions is now less certain.

The Multi-Chain Future of Tokenized Assets

BlackRock’s continued investment in Ethereum suggests that the firm believes in its foundational role in tokenization, even as Ethereum faces increased competition. However, BlackRock’s own products, such as the tokenized fund BUIDL, are already operating across multiple blockchains.

BUIDL supports cross-chain interoperability, which allows institutions to distribute tokenized assets across several networks. This strategy minimizes platform concentration risk and emphasizes the growing trend toward multi-chain environments for large-scale tokenization projects.

While Ethereum remains a leader in the space, its role as the primary blockchain for all tokenized assets is under threat. The growth of multi-chain platforms means that Ethereum may increasingly share the spotlight with other blockchains. However, Ethereum’s security and decentralization features will likely continue to play a central role in the future of tokenized assets, even if it no longer dominates market share.

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