In a column for The Economist, BlackRock CEO Larry Fink and COO Rob Goldstein asserted that tokenization is "the next major evolution in market infrastructure", potentially redrawing financial systems much like electronic messaging did in the 1970s. They describe it as a blockchain-driven overhaul that enables instantaneous settlement and expands investable assets by recording ownership on digital ledgers.
The executives highlighted that tokenization can replace manual processes and bespoke settlements, making markets faster and more secure. They noted that tokenized financial assets have grown approximately 300% over the past 20 months, comparing today's stage to "the internet in 1996" when Amazon was in its infancy.
BlackRock is actively building towards this future with its USD Institutional Digital Liquidity Fund (BUIDL), launched last year and now valued at $2.3 billion, ranking among the largest tokenized assets globally. Fink emphasized the need to tokenize all assets, especially those like real estate with multiple intermediaries, to reduce costs and improve accessibility.
However, the transition is expected to be gradual. Joshua Chu, co-chair of the Hong Kong Web3 Association, characterized it as "a multi-cycle transition" where regulated use cases will accrete over time, rather than a sudden revolution. The executives also stressed the importance of interoperability with legacy systems and thoughtful regulation for widespread adoption.
