BlackRock's tokenisation: A game changer for Africa's financial systems
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IN a landmark move earlier this year, BlackRock — the world's largest asset manager — launched its first tokenised fund on a public blockchain.
With more than $100 million (about R1.7 billion) in US Treasuries issued via tokenised assets, this is not just a fintech experiment. It's a signal: the traditional financial system is moving on-chain.
While this development unfolded in the halls of Wall Street and crypto exchanges in the US, its implications extend far beyond Western markets. In fact, for Africa — home to the world's fastest-growing youth population and one of the highest rates of mobile money adoption — this moment could be pivotal.
What is tokenisation and why does it matter for Africa?
Tokenisation refers to the process of converting rights to real-world assets, such as bonds, real estate, and fiat currencies, into digital tokens on a blockchain. These tokens can then be traded, transferred, or split into smaller units in a way that dramatically reduces friction, increases transparency, and enhances liquidity.
For Africa, tokenisation is not just a technological advancement; it is a financial lifeline.
Here's what this could unlock: Fractional Access to Global Assets — Africans can invest in U.S. bonds or real estate with as little as $10, removing the entry barriers created by traditional capital markets.
Africans can invest in U.S. bonds or real estate with as little as $10, removing the entry barriers created by traditional capital markets. Digitised Government Infrastructure — Imagine local municipalities issuing tokenised green bonds to fund solar projects, attracting global investors via blockchain-backed transparency.
Imagine local municipalities issuing tokenised green bonds to fund solar projects, attracting global investors via blockchain-backed transparency. Enhanced Remittance and Trade — Using tokenised stablecoins or assets, intra-African trade and diaspora remittances could be settled near-instantly with lower costs and greater reliability.
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Why should South Africa lead this movement?
South Africa, with its progressive regulatory approach and advanced financial sector, is perfectly positioned to become a tokenisation gateway for Africa. The Financial Sector Conduct Authority (FSCA) has already declared crypto assets as financial products, creating a precedent for regulatory innovation.
However, the rise of on-chain finance via giants like BlackRock now demands bolder action: Establish a Regulatory Sandbox for Tokenisation — South Africa must launch pilot projects that test tokenised government securities, commercial real estate, and even township infrastructure bonds.
South Africa must launch pilot projects that test tokenised government securities, commercial real estate, and even township infrastructure bonds. Develop Custodianship Frameworks — Safe, locally governed custodial solutions are essential to protect African investors and attract institutional confidence.
Safe, locally governed custodial solutions are essential to protect African investors and attract institutional confidence. Expand Public-Private Collaborations — Crypto-native firms and traditional financial institutions must be encouraged to co-develop tokenised solutions that address African economic realities.
What BlackRock has initiated is more than a fund — it's a preview of the future financial architecture. If Africa remains passive, it risks exclusion from systems being built without its input.
Tokenisation can: Democratise investment
Accelerate infrastructure finance
Boost trade and cross-border payments
Provide transparency in public finance
However, this requires vision and leadership, not just in technology adoption, but in regulatory clarity, education, and public awareness.
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