Will BlackRock Introduce Its Own Layer 2 Network?

According to Token Terminal, BlackRock may be on the verge of launching a Layer 2 (L2) solution on Ethereum, drawing parallels to @Base. If this comes to fruition, it could be a highly strategic move. By implementing an L2 network, BlackRock and other large institutional players would benefit from faster transactions and significantly lower fees than Ethereum’s mainnet. This could enable more efficient settlement processes for institutional transactions while providing a more scalable and cost-effective infrastructure for their blockchain-based operations.

An L2 network would not only enhance transaction speed and reduce costs, but it could also position BlackRock as a leader in adopting decentralized finance (DeFi) technology among traditional financial institutions. With Ethereum’s L2 scaling solutions becoming more prominent in the crypto space, a move like this would allow BlackRock to further integrate blockchain technology into its portfolio, catering to growing demand for decentralized applications and improving liquidity on its platform. Ultimately, this would enable BlackRock to maintain a competitive edge in a rapidly evolving digital financial landscape.

What BlackRock Can Leverage on

BlackRock now have access to over $80 billion in stablecoin liquidity on Ethereum’s mainnet, alongside $300 billion worth of Ether. Additionally, they can leverage wrapped versions of assets like Bitcoin and Solana. Smart contract platforms have achieved strong product-market fit, with substantial improvements in security and reliability over the past few years. These systems now protect around $100 billion across public networks, successfully defending against daily attacks from nation-state actors. The security and programmability offered by these systems surpass any existing electronic trading network.
While state roots are anchored to the Ethereum mainnet for verification purposes, Layer 2 (L2) solutions remain somewhat flexible, allowing corrections at the sequencer level if errors occur. Given the success and growing adoption of these technologies, it seems likely that this strategy is already underway. It wouldn’t be surprising if BlackRock were to launch its own L2 network by 2025.

Get free access to our lifetime VIP membership. Join us here.