We’re At The Beginning of Tokenizing All Assets: BlackRock CEO Larry Fink

“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,” noted BlackRock CEO Larry Fink in an interview with CNBC on Tuesday.

He said that the company has started focusing on “moving away from traditional financial assets by ‘re-potting’ them in a digital manner.” This way, investors could stay within the digital ecosystem, he added.

Next Wave of Opportunity

Fink envisions bringing some of the $4 trillion crypto market investment into traditional assets such as exchange-traded funds by tokenizing them and making them easier to access.

“There’s $4.1 trillion of money sitting globally in digital wallets,” he said before adding that a lot of that money is outside the United States.”

“If we could tokenize an ETF, you know, digitize that ETF, we could have investors who are just beginning to invest in markets through, let’s say, crypto. They’re investing in it, but now we could get them into the more traditional long-term retirement products.”

He added that this was the “next wave of opportunity” for BlackRock over the next ten years.

The thing that stood out to me the most from Larry Fink’s interview this morning was when he said the next wave of opportunity for BlackRock is “moving away from traditional financial assets” and making them digital.

“If we can tokenize an ETF, we can have investors who are just… pic.twitter.com/2javTBpe49

BlackRock is no stranger to crypto or tokenization. It has the largest tokenized cash money market fund called BUIDL, which has $2.8 billion in assets under management. It also has the world’s largest and fastest-growing Bitcoin ETF (IBIT), which has now surpassed $100 billion in AUM.

“It’s not about if the market’s going up or down, or if there’s a bubble in crypto or if there’s a bubble in technology … It’s about being in the market throughout the cycle,” he told CNBC’s Jim Cramer.

RWA Sector Outlook

The real-world asset tokenization sector is at an all-time high of $33.8 billion in on-chain value, according to RWA.xyz. That figure has grown 115% since the beginning of this year, and around half of it is tokenized private credit.

Despite all of the FUD, Ethereum remains the industry leader and standard for asset tokenization. It has a market share of 57%, which climbs to 78% if Ethereum Virtual Machine and layer-2 networks such as ZKsync, Polygon, and Arbitrum are included.

Many believe that BlackRock will continue to use Ethereum to bring its assets on-chain rather than reinventing the wheel.

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