BlackRock’s CEO, Larry Fink, has shared his view that financial markets are likely heading toward a future where traditional assets are converted into digital tokens.
In an October 14 interview on CNBC’s Squawk on the Street, Fink explained that tokenizing products like exchange-traded funds (ETFs) could help connect newer investors with more conventional financial tools, including retirement-focused products.
The idea is that by offering digital versions of familiar investments, the company can attract people who prefer a digital-first experience.
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Rather than sticking with paper-based or legacy systems, BlackRock sees value in building a digital structure where investors can manage their assets more efficiently.
However, Fink noted that tokenization is still at an early stage. He noted that converting assets such as real estate, stocks, and bonds into digital tokens will take time, but has strong potential to expand across different industries.
As part of its earnings update, BlackRock said it is actively exploring ways to take part in this trend, with teams across the company researching token-based solutions.
In a separate interview with CBS’s 60 Minutes, Fink also spoke about cryptocurrency’s role in investing. He said crypto could serve as an alternative asset for people looking to diversify. However, he added that it should not take up a large share of anyone’s portfolio.
Recently, UK Finance piloted tokenized sterling deposits with six major UK banks. What is the goal of the program? Read the full story.
