Tokenization could fundamentally re-plumb global financial markets, according to BlackRock executives Larry Fink and Rob Goldstein, promising faster settlement, lower costs and wider access to previously illiquid assets. They frame tokenization as a structural shift with practical products already in market, alongside substantial industry and regulatory challenges that still need to be resolved.
Tokenization is the conversion of real‑world assets into digital tokens on a blockchain. Fink and Goldstein say this shift could shorten multi‑day settlement cycles, reduce operational costs and cut counterparty risk by making ownership records more immediate and auditable.
A central benefit is fractional ownership that lowers entry barriers and enables broader investor participation. High‑value assets—real estate, private equity stakes or fine art—can be divided into smaller digital units, widening access; Fink encapsulated the idea succinctly: “tokenization is democratization,” framing the change in social as well as technical terms.
BlackRock’s bets, industry scale, and tokenization
BlackRock positions itself as an active builder rather than a passive observer. The firm, with $10.6 trillion in assets under management by July 2024, has launched a tokenized U.S. Treasury product, the BUIDL (BlackRock USD Institutional Digital Liquidity Fund), managed with Securitize. That fund had surpassed $1.94 billion in assets by April 2025 and approaches $2 billion in total value locked, paying daily interest in tokens and accepted as collateral on major platforms.
BlackRock is exploring tokenizing $150 billion in Treasury fund shares as part of a broader effort to catalyze a multi‑trillion dollar RWA market. Industry data cited by the firm notes the RWA market has already exceeded $10 billion and consultancies project dramatic expansion toward a multi‑trillion dollar opportunity by 2030.
Significant obstacles remain around cybersecurity, legal clarity and operational interoperability. Key risks include cybersecurity and smart contract vulnerabilities, potential market volatility from wider retail access, and the need for robust legal frameworks to govern tokenized ownership.
They called for faster regulatory clarity, urging bodies such as the Securities and Exchange Commission to “rapidly approve” appropriate initiatives to avoid fragmentation or offshore migration of innovation. Operationally, the transition requires new custodial arrangements, interoperability across ledgers, and engineering work to ensure finality and low latency comparable with existing market plumbing.
BlackRock frames tokenization as both a technological and market evolution that could reshape how assets are owned, traded and accounted for. The outcome will depend on demonstrable product growth, institutional adoption and regulatory decisions that either enable or constrain broader implementation.
