BlackRock CEO Larry Fink Sees Tokenization as Next Major Opportunity

TLDR

• BlackRock CEO Larry Fink says the company plans to pursue a larger role in tokenization over the coming years
• The asset manager currently holds $104 billion in crypto assets, representing 1% of its $13.5 trillion portfolio
• Fink believes tokenization can help onboard crypto investors into traditional retirement products through digitized ETFs
• BlackRock operates the largest tokenized money market fund, BUIDL, worth $2.8 billion across multiple blockchains
• The asset tokenization market is projected to grow from $2 trillion in 2025 to over $13 trillion by 2030

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BlackRock CEO Larry Fink announced during the company’s earnings call Tuesday that the asset management giant plans to take a larger role in tokenization. Teams across the firm are exploring how to use the technology to make markets more efficient and accessible.

Fink told CNBC that tokenizing traditional financial assets represents the next major wave of opportunity for BlackRock over the coming decades. The company manages $13.5 trillion in total assets. Its crypto holdings stand at $104 billion.

The CEO explained that tokenizing ETFs could create a bridge between crypto investors and traditional investment products. He said digitized ETFs would allow people who start investing through crypto to access long-term retirement products. This approach keeps investors within the digital ecosystem while expanding their portfolio options.

BlackRock already operates in the tokenization space. The company launched the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) in March 2024. The tokenized money market fund has grown to $2.8 billion, making it the largest of its kind.

BUIDL operates across multiple blockchains including Ethereum, Solana and Avalanche. BlackRock partnered with Securitize to issue the fund. The asset manager led Securitize’s $47 million fundraising round last year.

Growth Projections for Digital Assets

Fink stated he believes the digital asset market will grow substantially from its current $4.5 trillion size. Market research firm Mordor Intelligence projects the asset tokenization market will reach over $13 trillion by 2030. The market is currently valued at over $2 trillion in 2025.

BlackRock reported $61 million in revenue from its digital asset products during the third quarter. This represents a small fraction of the company’s total revenue of $6.5 billion. The firm’s assets under management grew to $13.4 trillion in Q3, up from $11.4 trillion the previous year.

BlackRock’s Crypto Market Position

The asset manager operates the largest spot bitcoin ETF in the United States with $93 billion in assets under management. Its spot ether ETF holds $17 billion in assets. BlackRock was among the first companies to launch these products in the U.S. market.

During his CNBC interview, Fink acknowledged his past criticism. He said his stance shifted over time because he continues to grow and learn. The CEO now compares crypto’s role in a portfolio to gold.

In a recent CBS 60 Minutes interview, Fink described crypto as an alternative asset for diversification. He said it has a role similar to gold in investor portfolios. However, he stated it should not represent a large portion of holdings.

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