BlackRock, the leading asset manager globally with $13.46 trillion in assets, including $104 billion in crypto resources, is anticipating a major shift towards the tokenization of traditional assets over the coming decades, as stated by CEO Larry Fink.

During a recent interview with CNBC’s Squawk on the Street, Fink expressed his belief in the significant potential of tokenizing all assets as a vital step forward for the firm, aimed at engaging new investors.

“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, they’re investing in it, but now we can get them into the more traditional long-term retirement products.”
(Translation: If we can turn an ETF into a digital asset, we can attract new investors.)

Fink further remarked, “We see this as the next wave of opportunity for BlackRock, as we begin to shift our focus from traditional financial assets to their digital counterparts, encouraging investors to remain within this digital ecosystem.”

As the largest asset manager, BlackRock commands $13.5 trillion in assets under management, with crypto investments representing about 1% of its portfolio.

Growth Ahead for Tokenization

Fink also conveyed that the concept of asset tokenization is still nascent, with considerable growth potential across multiple sectors.

“I firmly believe we are just at the onset of tokenizing all asset classes, from real estate to equities and bonds alike.”
(Translation: I truly believe we are just beginning to digitize all types of assets.)

The asset tokenization market, valued at over $2 trillion, is projected to expand dramatically, potentially exceeding $13 trillion by 2030. Fink announced future initiatives where BlackRock plans to enhance its involvement in tokenization as various teams explore new avenues. Currently, BlackRock operates the largest tokenized cash market fund, the $2.8 billion BlackRock USD Institutional Digital Liquidity Fund, also known as BUIDL.

Earlier this week on CBS’s 60 Minutes, Fink acknowledged that cryptocurrencies are essential for diversified investment portfolios, labeling them a complement to gold.

“There is a role for crypto in the same way there is a role for gold; it’s an alternative.”
(Translation: Cryptocurrencies serve a purpose similar to gold; they offer an alternative investment option.)
He commented on his evolving perspective on crypto, noting, “I grow and learn.”