Digital Assets and Traditional Finance Could Merge via Tokenization
BlackRock CEO Larry Fink and COO Rob Goldstein have strengthened their endorsement of digital assets, arguing that tokenization will serve as a bridge between traditional finance and the crypto sector. Their joint opinion article, published Monday in The Economist, marks a notable stance from Fink, who was once openly skeptical about cryptocurrencies.
While they do not expect tokenization to replace existing financial structures soon, both executives believe it will help bring the two industries closer together.
They wrote: “Think of it instead as a bridge being built from both sides of a river, converging in the middle. On one side stand traditional institutions. On the other are digital-first innovators: stablecoin issuers, fintechs and public blockchains.”
According to them, these groups are not in competition, but instead are “learning to interoperate.” They added:
“In the future, people won’t keep stocks and bonds in one portfolio and crypto in another. Assets of all kinds could one day be bought, sold and held through a single digital wallet.”
BlackRock, the world’s largest asset manager with $13.4 trillion AUM, has increasingly embraced digital asset infrastructure, underscoring how rapidly perceptions are shifting at the highest levels of global finance.
Understanding the Real Value of Tokenization
Fink and Goldstein acknowledged that the early hype cycle surrounding crypto made it difficult to identify the real innovation beneath the noise.
“At first, it was hard to see the ‘big idea’ because tokenization was tangled up in the crypto boom, which often looked like speculation,” they wrote.
But traditional finance, they argue, now recognizes tokenization’s deeper value.
“Tokenization can greatly expand the world of investable assets beyond the listed stocks and bonds that dominate markets today.”
BlackRock is already participating directly: its tokenized cash market fund, BUIDL, launched in March 2024 and has grown to $2.8 billion, making it the largest of its kind.
Regulators Must Enable Safe Tokenized Markets
Both executives stressed that tokenization can only advance meaningfully with updated and consistent regulation, enabling traditional markets and tokenized markets to operate together.
They compared the evolution to the rise of bond ETFs, which linked dealer markets with public exchanges and improved trading efficiency.
They noted: “And now with spot Bitcoin ETFs, even digital assets are on traditional exchanges. Each of these innovations builds bridges. The same principle applies to tokenization.”
Regulators, they argued, should focus on the underlying asset—not the technology delivering it.
“Regulators should aim for consistency: risk should be judged by what it is, not how it’s packaged. A bond is still a bond, even if it lives on a blockchain.”
