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BlackRock Casts Tokenization as Finance’s Next Infrastructure Shift

The firm says the transition will be gradual with the fastest uptake in developing markets.

Overview

  • In a guest column for The Economist, Larry Fink and Rob Goldstein describe tokenization as the next major evolution in market plumbing with the potential for instantaneous settlement and wider asset access.
  • They liken today’s stage to the internet in 1996 and note tokenized assets have grown roughly 300% over about 20 months.
  • BlackRock’s BUIDL tokenized money market fund has reached approximately $2.3 billion in assets on-chain, according to RWA.xyz data.
  • Fink says roughly 75% of current adoption is occurring in developing countries and warns the U.S., U.K. and EU are falling behind where trading is happening.
  • The executives call for regulation and interoperability, framing tokenization as a bridge to existing systems, and Fink will discuss the topic with Coinbase’s Brian Armstrong at the DealBook Summit.