BlackRock CEO Larry Fink says the firm is preparing for a long-term shift in how financial assets are structured and accessed. In a recent interview, Fink outlined a strategy focused on tokenizing traditional investment products such as ETFs, with the goal of integrating them into digital ecosystems. He described this approach as the “next wave of opportunity” for the company.
The comments come as BlackRock continues to expand its footprint in digital assets. The firm currently manages $13.5 trillion in assets, including over $100 billion in crypto-related holdings.
Tokenization as a Long-Term Strategy
During an interview with CNBC on Tuesday, Fink said BlackRock is exploring how to tokenize traditional investment products. He explained that by doing so, the company aims to bridge digital asset users with conventional financial markets.
“If we can tokenize an ETF, digitize that ETF, we can have investors who are just beginning to invest in markets through, let’s say, crypto,” he said. “They’re investing in it, but now we can get them into the more traditional long-term retirement products.”
Fink added that the process involves “moving away from traditional financial assets by repotting them in a digital manner.” According to him, this would allow users to stay within the digital ecosystem while also gaining access to regulated investment vehicles.
BlackRock’s Role in a Changing Market
Fink noted that BlackRock plans to play a larger role in the tokenization sector over the next decade. Teams across the firm are currently researching tokenization applications across different asset classes.
“We look at that as the next wave of opportunity for BlackRock over the next tens of years,” he said.
The company already operates the largest tokenized cash fund. Known as the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), it launched in March 2024 and currently manages $2.8 billion in assets. BlackRock also oversees the world’s largest Bitcoin ETF, IBIT, with over $100 billion in assets under management.
Fink confirmed that the firm is still in the early stages of this shift. “I do believe we’re just at the beginning of the tokenization of all assets, from real estate to equities, to bonds. Across the board,” he told CNBC.
Market Trends and Tokenization Growth
The asset tokenization market is currently estimated at over $2 trillion. According to Mordor Intelligence, that figure could grow to more than $13 trillion by 2030. At the same time, the value of real-world assets held on-chain reached $33.8 billion, with half of that amount consisting of tokenized private credit, based on data from RWA.xyz.
Ethereum remains the dominant platform for tokenized assets. It holds 57% of the market share, which increases to 78% when including Ethereum-compatible layer-2 networks such as Arbitrum, Polygon, and ZKsync. Many expect that BlackRock will continue to use Ethereum-based infrastructure for its tokenization plans.
Fink also pointed to growing interest from global investors already active in digital wallets. “There’s $4.1 trillion of money sitting globally in digital wallets,” he said, noting that much of it is located outside the United States.
Shift in Sentiment Toward Crypto
Fink acknowledged that his stance on crypto has changed over the years. In earlier comments made in 2017 and 2018, he expressed skepticism, calling the asset class an “index of money laundering.” Today, however, he sees a role for digital assets in diversified portfolios.
“There is a role for crypto in the same way there is a role for gold,” he said in a separate interview. “It’s an alternative. For those looking to diversify, this is not a bad asset, but I don’t believe it should be a large part of your portfolio.”
When asked about this shift in perspective, Fink said, “I grow and learn,” suggesting that BlackRock’s current approach reflects updated views based on changing market conditions.
