BlackRock is working on its own technology to tokenize a wide variety of assets, including real estate, equities, and bonds.
CEO Larry Fink stated that the global market currently contains over $4.5 trillion in digital wallets, which encompass crypto, stablecoins, and tokenized assets.
“A significant portion of that capital is located outside the United States,” Fink mentioned on CNBC earlier today, highlighting the potential for the firm to engage new investors via digital channels.
Fink indicated that tokenization could enable investors entering markets through crypto to access more conventional long-term products, such as retirement funds.
“If we could tokenize an ETF, we could transition them into more traditional long-term retirement products,” he said, referring to BlackRock’s digital platforms, which feature tokenized money market funds and Bitcoin investments that have surpassed $100 billion.
Fink also stated yesterday that Bitcoin and crypto “serve the same function as gold.”
BlackRock’s iShares Bitcoin Trust ETF, which launched just 21 months ago, has become the company’s most lucrative fund, even surpassing offerings that have been available for over two decades.
The firm’s growth isn’t limited to digital assets. Fink pointed to record inflows across ETFs, private markets, AI-driven equity strategies, and investment technology platforms.
“It wasn’t confined to a single product area or region. It was comprehensive,” he said, emphasizing the diversity of BlackRock’s expansion across business sectors.
Fink credited the firm’s approach of merging active and passive management, public and private markets, along with technology enhancements, as key drivers of this growth.
BlackRock, tokenization, and long-term investing
Fink also emphasized the importance of long-term investing in his discussion: “It’s not about whether our market is going up or down, or the existence of a bubble in crypto or technology. It’s about staying in the market throughout the cycles,” he stated.
He highlighted the impact of compounding over decades, noting that even a modest additional return can considerably enhance a retirement portfolio over a 30-year timeframe.
Looking ahead, Fink remarked that regulatory clarity in the U.S. and increased investment in digital asset innovation will be critical for fostering market growth.
“We’re merely at the outset of the tokenization of all assets,” he concluded.
The firm anticipates that over the next few decades, tokenized financial products will enable investors to operate within a digital ecosystem while accessing a wide range of traditional and alternative investments.
