BlackRock CEO: Tokenization of traditional assets will become the next financial revolution

BlackRock CEO Larry Fink recently stated that the global financial industry is on the verge of a major transformation, driven by the tokenization of traditional assets such as stocks, bonds, and real estate.

In an interview on October 14th, Fink stated that tokenization offers BlackRock an opportunity to attract more investors to mainstream financial markets through digital means. He estimated the total size of this "digital wallet" market to be approximately $4.1 trillion.

Fink further explained, "If we can digitize products like exchange-traded funds (ETFs) and present them in tokenized form, we have the opportunity to attract investors who are new to cryptocurrency and gradually guide them into longer-term investment products. This will be a key opportunity for BlackRock's growth over the next few decades."

As the world's largest asset management company, BlackRock currently manages $13.5 trillion in assets, of which approximately $104 billion, or approximately 1%, is in cryptocurrency-related assets.

Fink emphasized that while tokenization technology has enormous potential, it is still in its early stages of development. According to research by Mordor Intelligence, the tokenized asset market is expected to surge from its current $2 trillion to over $13 trillion by the end of 2025, and will continue to expand through 2030.

Finally, Fink revealed that BlackRock is actively investing in this emerging sector. Several internal teams are working to develop new tokenization strategies to solidify its leading position in digital asset management.

BlackRock has already launched the BUIDL (BlackRock USD Institutional Digital Liquidity Fund), the world's largest tokenized spot market fund. The fund launched in March 2024 and has already reached $2.8 billion in assets.

BlackRock's strategic foresight has been recognized by Wall Street.

In its latest research report, Morgan Stanley reiterated its "overweight" rating on BlackRock's stock and cited asset tokenization as one of the key factors in its bullish outlook on the company's prospects. Notably, Fink's stance on digital assets has shifted significantly. Previously publicly critical of cryptocurrencies, he recently compared them to gold on a television program, arguing that cryptocurrencies can be an effective tool for portfolio diversification.

The CEO, who once called Bitcoin an "index of money laundering," admitted that his views have evolved: "I used to be a critic, but I'm constantly learning and evolving."

Fink and BlackRock's increasing emphasis on blockchain technology and tokenized finance reflects the unprecedentedly aggressive pace at which traditional financial institutions are embracing the wave of digital asset management.