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BlackRock Elevates Tokenization as Next Market Infrastructure as IMF Warns of Risks

Executives cite early traction, with oversight and interoperability set to shape the pace.

Overview

  • Larry Fink and Rob Goldstein wrote in The Economist that tokenization marks the next major evolution in market plumbing, enabling near‑instant settlement and broader asset access.
  • BlackRock points to rapid momentum, noting tokenized financial assets are up roughly 300% over about 20 months and highlighting its BUIDL fund at around $2.3 billion on‑chain.
  • Fink says roughly three‑quarters of current adoption is occurring in developing markets, with the U.S., U.K., and EU trailing in where trading activity is taking place.
  • The IMF warns that tokenized markets could transmit shocks at machine speed through atomic settlement and interconnected smart contracts, raising risks of flash crashes and liquidity strains.
  • DealBook will host a scheduled discussion featuring Fink and Coinbase’s Brian Armstrong on the future of money and markets, with tokenization set for center stage.