- BlackRock’s CEO outlined plans to digitize a wide range of asset classes, including real estate, equities, and bonds
- Fink also acknowledged that his views have evolved, considering that back in 2017, he called Bitcoin a “money laundering index,” whereas now he refers to it as “digital gold”
- BlackRock is reportedly creating in-house systems for turning assets into digital tokens, aiming to own the technology itself instead of just using others’
In a recent CNBC interview, BlackRock’s CEO Larry Fink declared that his firm is actively planning to “repot” traditional financial assets, moving them from legacy structures into tokenized versions on blockchains.
During the interview, he stated: “So we look at that as the next wave of opportunity for BlackRock over the next tens of years, as we start moving away from traditional financial assets by repotting them in a digital manner and then having people stay in that digital ecosystem. They can have their cash, and we have the largest cash money market fund that’s tokenized called BUIDL.”
The BlackRock CEO outlined plans to digitize a wide range of asset classes, including real estate, equities, and bonds. The objective is to improve their accessibility by enabling fractional ownership, accelerating settlement times, and allowing them to be traded around the clock in a digital environment.
Related: BlackRock’s IBIT Bitcoin ETF Pulls $2.8 Billion Inflows in Six Days
Fink also acknowledged that his views have evolved, considering that back in 2017, he called Bitcoin a “money laundering index,” whereas now he refers to it as “digital gold.”
BlackRock is reportedly creating in-house systems for turning assets into digital tokens, aiming to own the technology itself instead of just using others’.
Interestingly, since many big investment firms followed BlackRock’s lead with Bitcoin ETFs, this bigger move into tokenization could push the entire industry to speed up the process of moving stocks, bonds, and other traditional assets onto the blockchain.
Why this move is noteworthy
Considering BlackRock is a powerhouse of a company, if it succeeds in tokenizing major asset classes, it could transform how financial markets are structured. This would affect everything from how easily assets can be traded and how quickly payments are finalized, to who can invest, what the costs are, and how transparent the system is.
That being said, there are still major hurdles involving technology, laws, rules, and actually getting people to use it. Just because an asset becomes a token doesn’t mean it will be easy to trade or work with other systems.
Related: Bitcoin Price Prediction: BlackRock’s Fink Backs BTC As ‘Digital Gold’
For now, the key thing to watch is how BlackRock runs these tokenized funds. The way the company handles security, follows regulations, allows investors to cash out, and enables trading will show if this is a real game-changer or just a marketing rebrand.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
Source: https://coinedition.com/blackrock-frames-tokenization-as-its-next-multi-year-opportunity/
