BlackRock leadership has shared their view that tokenization can serve as a practical link between traditional finance and the digital asset space. In a recent article, CEO Larry Fink and COO Rob Goldstein outlined how tokenized systems may reshape how people invest and interact with financial markets.
Writing in The Economist, BlackRock executives said tokenization should not be seen as a disruption to current financial systems but as a way to build connectivity.
“Think of it instead as a bridge being built from both sides of a river,” Fink and Goldstein wrote. “On one side stand traditional institutions. On the other are digital-first innovators.”
According to the article, the goal is not to separate crypto from traditional finance, but to enable both to work together. In their view, a single platform could one day hold a mix of assets—stocks, bonds, and crypto—all managed in a digital wallet.
“Assets of all kinds could one day be bought, sold and held through a single digital wallet,” the authors stated.
BlackRock Sees Growing Value in Tokenized Markets
Fink, once skeptical of crypto, has shifted his stance in recent years. The article explained that during the early stages of the crypto market, tokenization was harder to understand because of its link to speculation. However, they now view the technology as a tool to expand investment access beyond listed stocks and bonds.
BlackRock currently operates the world’s largest tokenized cash market fund, worth $2.8 billion. Known as the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), it launched in March 2024. This fund uses blockchain infrastructure to tokenize ownership of short-term investments, offering real-world usage of the technology.
Policy Changes Needed for Tokenized and Traditional Systems to Work Together
While optimistic about tokenization, BlackRock’s top executives stressed that regulation will play a key role in making it work. They encouraged policymakers to update financial rules to allow tokenized and traditional systems to function side by side.
Fink and Goldstein drew a comparison to how bond ETFs brought greater access and efficiency to fixed-income markets. They believe tokenization can follow a similar path if approached carefully.
“Each of these innovations builds bridges. The same principle applies to tokenization,” they wrote.
They also emphasized the importance of consistency in how financial products are judged. “A bond is still a bond, even if it lives on a blockchain,” they noted, calling for regulators to focus on the nature of the asset rather than its format.
