BlackRock Inc., the world’s biggest asset manager, in March unveiled its first tokenized mutual fund, the BlackRock USD Institutional Digital Liquidity Fund, which now has a market value of more than $500 million.

Cryptocurrencies were invented in the heat of the 2008-2009 financial crisis to provide an alternative to banks. Many banks and financial institutions on Wall Street that initially scoffed at the dreams of devotees known as “cypherpunks” some 15 years ago are now not only in the cryptocurrency business, they’re also beginning to adopt the underlying blockchain technology.

While this may strike crypto enthusiasts as undermining a fundamental reason for the technology, banks are looking at the bottom line and see money to be made. They are drawn to blockchain technology for its ability to “tokenize” traditional assets such as stocks and Treasury bills, which makes trading them faster and cheaper. Critics say Wall Street institutions aren’t just adopting, but co-opting the technology to generate fees — similar to how financial firms turned low-cost, low-touch exchange traded funds into a healthy business.

How are traditional assets turned into tokens?

“Real-world asset tokenization” is the process of representing assets like bonds, stocks, art or even ownership shares in office buildings as digital tokens on a blockchain. Anyone who owns the token owns the asset. Ownership can be moved easily and almost instantly by simply moving it from one crypto wallet to another. It allows assets to be broken down into smaller parts, potentially widening the pool of ownership and easing the ability to trade.

Why do that?

The tokenization process can eliminate settlement delays from having to clear transactions that often use a slew of intermediaries, and record them across multiple systems. By placing contractual information, such as the terms of ownership and conditions of transfer, on a blockchain, assets can be bought and sold in pieces and traded outside of market hours. Tokens can be programmed to automatically behave in certain ways: For example, to be released to a seller once goods are delivered to a buyer. Tokenized assets could attract those who might not have a brokerage account but already trade crypto.

What other kinds of assets could be tokenized?

Stocks, art, houses, golf courses, exclusive memberships — you name it. All assets under the sun could theoretically be tokenized and many proponents believe they will be. Even pricey sneakers are being represented on blockchains to prove their authenticity when the physical pair is traded. McKinsey estimates the total tokenized market — excluding stablecoins, which are tokens pegged to fiat — could reach around $2 trillion by 2030, driven by usage in mutual funds, bonds and exchange-traded notes, loans and securitizations, and alternative funds. That’s roughly equal to the size of the entire crypto market today.