BlackRock to Build Its Own Tokenization Tech Larry Fink Pushes “Next Generation” Finance

In a move that won’t surprise crypto insiders but might rattle traditionalists, BlackRock CEO Larry Fink has affirmed that the firm is developing proprietary technology for the tokenization of assets setting the stage for a new era in finance. According to recent statements and industry reporting, BlackRock sees tokenization as more than hype it’s the next generation of markets.

Fink has long spoken in favor of tokenization. In past interviews, he has said that “the next generation for markets, the next generation in financial securities, will be tokenization of securities.” He envisions a world where every stock, every bond, every fund sits on a common digital ledger.

Now, that rhetoric is evolving into action. BlackRock is reportedly working behind the scenes to create infrastructure internal platforms, protocols, and tech stacks that can convert traditional assets into digital tokens. While full details are scarce, the initiative signals BlackRock’s intent to lead, not follow, in the shift toward asset tokenization.

Why BlackRock Is Building Tokenization Tech

Control & differentiation: Owning the stack gives BlackRock advantages over using third-party systems.
Seamless integration: Tokenization can streamline settlement, compliance, and trading across its massive product universe.
Future-proofing: If markets migrate to token-based rails, being early confers strategic power.
Synergy with its crypto initiatives: BlackRock already has crypto ETFs and the BUIDL tokenized money-market fund, so building tech is a logical extension.

Still, transforming talk into tech is harder than it sounds. The challenges are numerous regulatory alignment, identity verification, custody security, interoperability, and liquidity. Tokenizing real-world assets (RWAs) is promising but still nascent.

What to Watch Next

Will BlackRock adopt public or permissioned blockchains?
How will regulators respond? These tokenized assets will still be subject to securities law.
Which asset classes will BlackRock prioritize equities, bonds, real estate?
Will this help or hurt liquidity in token markets? Many tokenized assets currently suffer low secondary trading.
How soon will BlackRock deploy this in live products for investors?

FAQs

Q: Does BlackRock already have tokenized products?
Yes. BlackRock launched its BUIDL tokenized money market fund, which digitizes cash, Treasuries, and repos into tokens.

Q: Why does BlackRock want its own tokenization technology?
To control infrastructure, integrate tokenized assets seamlessly into its offerings, and gain competitive advantage if markets shift to token rails.

Q: Is tokenizing everything realistic?
It may take a while. Many assets today, especially RWAs, face low liquidity, regulatory uncertainty, and infrastructure gaps.

Q: Do tokenized assets still count as securities?
Yes tokenization doesn’t change the legal nature. Tokens tied to equities, bonds, or funds remain subject to securities and compliance laws.

Q: How will individual investors benefit?
Tokenization could enable fractional ownership, 24/7 markets, lower fees, and global access to previously illiquid assets.