BlackRock CEO Touts Tokenization, Warns US ‘Lagging’ in Innovation

Underlying technologies in the digital assets space could have exciting applications for the asset management industry, according to BlackRock’s Larry Fink

article-image

WORLD ECONOMIC FORUM/swiss-image.ch/Photo Moritz Hager, modified by Blockworks (CC BY-NC-SA 2.0)

share

BlackRock chief Larry Fink highlighted the financial headway taking place in some countries other than the US, which appears to be falling behind in comparison.

In an annual letter to investors published Wednesday, Fink wrote about rising interest in the digital assets space over the past year, even though bankrupt crypto exchange FTX really captured the spotlight.

He called attention to faster and more efficient payments in India, Brazil and parts of Africa. India’s United Payments Interface (UPI), a type of instant-real time payment system, has become a roaring success as it is now one of the most widely-used forms of payment in the country. A similar system in Brazil called Pix has evolved the way locals pay. 

“By contrast, many developed markets, including the US, are lagging behind in innovation, leaving the cost of payments much higher,” he said.

Fink oversees the world’s largest asset manager, which has nearly $8 trillion in assets under management. And he believes the asset management industry is yet to utilize some of the most promising technologies in the digital asset space. 

Specifically, the tokenization of assets is an attractive use case for the BlackRock CEO because it points to chances of “driving efficiencies in capital markets, shortening value chains, and improving cost and access for investors.”

He said BlackRock continues to explore the digital assets ecosystem, with a special focus on aspects that would drive the most value to clients, like permissioned blockchains and tokenization of stocks and bonds. 

Other prominent financial institutions like Goldman Sachs, Hamilton Lane and Siemens have already piqued investor interest by undertaking their own distinct asset tokenization projects. In fact, Hong Kong’s government tapped Goldman Sachs’ tokenization protocol to issue its first tokenized green bond.

This isn’t the first time Fink vocalized his thoughts about the potential of asset tokenization. He addressed the FTX blow-up at the New York Times DealBook Summit in December, saying there were “some misbehavior of major consequences.” And despite the pitfalls associated with the collapse, he said the tech around cryptocurrencies will be “very important” going forward. 

“I believe the next generation for markets and next generation for securities will be tokenization of securities,” he said then.

Fink acknowledged that participating in the digital assets industry doesn’t come without risks, and said there is a clear need for regulation in the market as it is yet to fully mature.


Get the news in your inbox. Explore Blockworks newsletters:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your morning with the top news and analysis to inform your day in crypto.
  • Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
  • 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
  • Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
  • The Drop: For crypto collectors and traders, covering apps, games, memes and more.
  • Supply Shock: Tracking Bitcoin’s rise from internet plaything worth less than a penny to global phenomenon disrupting money as we know it.
Tags

Upcoming Events

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research

article-image

Top Committee Democrat Sen. Elizabeth Warren in her opening statement accused Atkins of “helping billionaire CEOs like Sam Bankman-Fried”

article-image

Introducing garbled circuits for enhanced privacy and regulatory compliance

article-image

Ross Ulbricht was a freedom maximalist building freedom tech, powered by Bitcoin

article-image

Solana validators can reap benefits including payments, votes and community clout

article-image

Sponsored

WalletConnect is cementing itself as the essential connectivity layer, ensuring wallets remain the entry point for billions of users

article-image

According to a legal filing, Galaxy Digital helped boost the price of LUNA while quietly selling its tokens