BlackRock’s Tokenization Wave: From Skepticism to Strategy

In mid-October 2025, BlackRock CEO Larry Fink expressed strong support for tokenization, calling it the “next wave of opportunity” for finance. This was a change from his earlier skepticism about digital assets. He explained that tokenization could transform how stocks, bonds, and real estate are handled by using blockchain technology, making ownership quicker, more divisible, and clearer.

Fink pointed out that tokenized exchange-traded funds (ETFs) could link long-term retirement products with a new generation of crypto investors. He discussed these ideas during earnings calls and media interviews, highlighting BlackRock’s plan to grow its digital strategy in the coming years. Currently, BlackRock manages about $104 billion in crypto-related assets, which is just 1% of its total $13.5 trillion under management. This includes tokenized treasury products and the $2.8 billion BUIDL fund, which has been a test case for blockchain-based investments.

Fink has urged regulators such as the U.S. Securities and Exchange Commission to accelerate approvals for tokenized versions of bonds and equities. He projected that the tokenization market could expand from roughly $2 trillion in 2025 to more than $13 trillion by 2030. His comments framed tokenization not as a niche experiment but as a long-term transformation of how financial products are issued, traded and held. He has also softened earlier criticisms of crypto, now comparing digital assets to gold as a tool for diversification in portfolios. This shift parallels BlackRock’s success with spot crypto ETFs and strategic partnerships that bring institutional credibility to blockchain-based products.

The endorsement has drawn significant attention across financial circles and the crypto community. Supporters argue that tokenization offers increased liquidity, fractional ownership and 24/7 market access. They see it as a pathway to mainstream adoption that connects traditional finance with digital infrastructure. At the same time, regulatory frameworks remain a major hurdle. Approval delays, compliance demands and jurisdictional inconsistencies could slow momentum. Past examples in the crypto sector, such as the boom-and-bust cycles in NFTs and DeFi, also serve as reminders that innovation without guardrails can stall or backfire. The difference now lies in institutional involvement, with firms like BlackRock bringing scale, infrastructure and compliance experience.

To understand the scale of BlackRock’s tokenization ambitions, the following table summarizes the key figures shaping the narrative:

Reactions to Fink’s comments have varied from excitement to caution. Supporters of digital assets see this as a significant step that could bring much-needed credibility and investment to the industry. Analysts believe BlackRock’s strong infrastructure could connect blockchain technology with traditional finance. Even critics agree that having big institutions involved could help stabilize the digital asset market and reduce wild speculation. By linking tokenization with regulated financial products, companies like BlackRock might make it easier for traditional investors to start exploring crypto.

The potential impact extends beyond BlackRock or Wall Street. Tokenization could democratize access to assets previously out of reach for many investors. Fractional shares of property, bonds or funds could be purchased in smaller increments, opening the door for broader participation. Faster settlement times and transparent ownership records may also reduce friction in global markets.

BlackRock’s strategy suggests that tokenization is not simply a trend but a structural evolution of the financial system. If regulators adapt and infrastructure scales, digital representations of assets could reshape the architecture of investment, lending and payments. If those pieces fail to align, tokenization risks remaining confined to niche applications rather than becoming the backbone of mainstream finance.

Looking Ahead to the Future of Tokenization

Predictions for tokenization are very optimistic. Some experts believe that BlackRock’s involvement could help millions of people start using crypto over the next year. If tokenized funds and bonds get clear regulations, they could become a standard part of retirement plans, government investments, and corporate portfolios. By 2030, tokenized assets could be worth tens of trillions of dollars. Some believe these digital financial systems could be even more valuable if they become common in banking, payments, and capital markets.

The focus has shifted from whether tokenization will be important to how quickly it will grow. Driven by need, innovation, or competition, the change is happening. Larry Fink’s comments indicate that the future of finance could be digital by nature, not as an exception.