BlackRock Sees Tokenization as the Next Evolution in Finance

BlackRock executives describe tokenization as the latest milestone in a decades-long transformation of financial infrastructure. From phone-based trading in the 1970s to SWIFT in 1977 and blockchain technology in 2009, each innovation improved settlement speed and market transparency. Tokenization extends this evolution by placing nearly any asset on a shared digital ledger, potentially expanding the universe of investable assets far beyond today’s stocks and bonds. While previously overshadowed by speculative crypto activity, the practical value of tokenization is now recognized by traditional institutions.

Rapid Growth of Tokenized Real-World Assets

Although tokenized real-world assets currently represent a small portion of global markets, their growth has been swift. BlackRock reports that the segment has increased roughly 300 percent over the past 20 months, with adoption particularly strong in emerging markets where traditional banking infrastructure is limited. BlackRock’s tokenized U.S. Treasury fund, BUIDL, now surpasses $2 billion in value locked and operates fully on public blockchains. The firm has further expanded its digital-asset footprint through spot Bitcoin and Ethereum ETFs, which collectively account for over $75 billion in net inflows.

Bridging Traditional and Digital Finance

Fink and Goldstein stress that tokenization is not a replacement for existing systems but a bridge linking traditional finance with digital innovators. Investors may eventually hold all asset types—from stocks and bonds to tokenized products—within a single digital wallet. Two key advantages could drive this shift: instant settlement, reducing counterparty risk across global markets, and digitized private-market processes that lower costs, simplify execution, and increase accessibility to previously illiquid holdings.

Regulatory Alignment and Investor Protections

The executives urge regulators to update current frameworks rather than create entirely new ones, emphasizing that a bond remains a bond even on a blockchain. They call for clear investor protections, robust risk management, and modern digital-identity systems to support this evolution.

Conclusion: Tokenization as a Core Building Block

BlackRock views tokenization as entering a decisive phase that could reshape global finance like the early internet. The rapid adoption of tokenized real-world assets highlights the shift toward digital representations of traditional value. With initiatives like the BUIDL fund, traditional assets are migrating to blockchain-based infrastructure, replacing slow, paper-driven processes with programmable, verifiable digital systems. If regulation evolves alongside the technology, tokenization could become a central component of global finance, bridging traditional institutions and digital-first platforms while making markets more transparent, accessible, and resilient. Real-world asset tokenization is no longer experimental—it is a clear sign of the next major transformation in finance.