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:

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:

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:

• Provide transparency in public finance

However, this requires vision and leadership, not just in technology adoption, but in regulatory clarity, education, and public awareness.

Africa has long been seen as a passive recipient in global finance. This is our chance to change the narrative. We must not simply react to global trends — we must build our own platforms, shape our own standards, and lead the development of inclusive on-chain finance.

The blockchain era is not coming; it is already here. The only question is: Will Africa shape its place within it, or be shaped by others?

** The views expressed here do not reflect those of the Sunday Independent, IOL, or Independent Media.