BlackRock CEO Sees ‘New Wave of Opportunity’ in Asset Tokenization, Expands Crypto Focus

• BlackRock’s CEO Larry Fink views asset tokenization as a major future opportunity for the firm.
• The company plans to tokenize traditional financial assets, including ETFs, real estate, equities, and bonds.
• Fink believes tokenization will onboard new investors into traditional financial products.
• BlackRock already holds $104 billion in crypto assets, about 1% of its portfolio.
• The asset tokenization market is expected to grow from $2 trillion in 2025 to $13 trillion by 2030.

Larry Fink, CEO of BlackRock, the world’s largest asset manager with $13.46 trillion in assets under management, sees tokenization as the next big wave in the financial industry. Speaking in an interview with CNBC’s Squawk on the Street, Fink explained that the firm envisions a future where traditional financial assets, such as ETFs, real estate, equities, and bonds, are tokenized and digitized, making them more accessible to a broader range of investors.

Fink highlighted that tokenizing assets like ETFs could introduce new investors to markets, especially those already engaging with crypto, and transition them into traditional long-term investment products such as retirement funds. He sees this as a major opportunity for BlackRock in the coming decades, as it continues to shift towards a digital-first financial ecosystem. “We look at that as the next wave of opportunity for BlackRock over the next tens of years,” Fink said, emphasizing the company’s commitment to embracing the tokenization trend.

Currently, BlackRock holds $104 billion in crypto assets, representing approximately 1% of its overall portfolio. Although the firm is already heavily involved in the crypto space, Fink acknowledged that tokenization is still in its early stages and that significant room for growth exists across a variety of sectors. “I do believe we’re just at the beginning of the tokenization of all assets, from real estate to equities, to bonds,” he remarked.

The asset tokenization market is expected to grow significantly, with projections estimating its value will exceed $13 trillion by 2030, up from over $2 trillion in 2025, according to Mordor Intelligence. BlackRock is already positioning itself at the forefront of this shift. The firm launched the largest tokenized cash market fund, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), in March 2024, with a value of $2.8 billion. BlackRock’s involvement in tokenization reflects its strategy to enhance its role in the growing digital asset space, with teams across the firm exploring various tokenization opportunities.

Fink’s comments also highlighted his evolution on crypto. Once a vocal critic of cryptocurrency, calling it an “index of money laundering” in 2017 and stating in 2018 that none of his clients wanted to invest in crypto, Fink has since softened his stance. In a recent interview with 60 Minutes, Fink acknowledged that crypto now plays a vital role in diversified investor portfolios, similar to gold. He stated that while crypto may not make up a large portion of a portfolio, it offers a valuable alternative for diversification.

Fink’s shift in perspective underscores the growing acceptance of crypto and tokenization within traditional financial circles. As BlackRock moves further into tokenizing traditional assets, it is poised to play a major role in reshaping how financial markets operate in the digital age.

Final Thought

BlackRock’s focus on tokenizing traditional financial assets is a clear signal of the future of finance. As the firm positions itself at the forefront of the tokenization trend, its efforts to bridge the gap between digital assets and traditional investments could significantly influence how assets are managed and traded in the coming decades. The growth of tokenization offers a new realm of opportunities for both institutional investors and individuals looking to diversify their portfolios.