Tokenization Moves Toward a Breakout Phase
BlackRock CEO Larry Fink and COO Rob Goldstein believe tokenization is on track to reshape the backbone of global finance. In a recent column, they compared today’s momentum to the early internet era in the 1990s, when digital technology began to influence every industry. They argue that moving traditional assets to blockchain networks could speed up and secure how markets issue, trade, and settle financial products.
The executives describe tokenization as more than a short-lived crypto trend. Instead, they see it entering a pre-boom phase where everyday financial instruments could shift to digital tokens. This includes equities, bonds, real estate, and even ETFs. As this technology matures, it may open the door to faster transactions and broader investor access.
A Growing Market Backed by Real Adoption
The market for tokenized real-world assets continues to expand. Estimates place its value above 2 trillion dollars in 2025, and some forecasts expect it to pass 13 trillion dollars by 2030. BlackRock has already stepped into this space with its tokenized money-market fund called BUIDL. Since launching in March 2024, it has become the world’s largest tokenized cash-market fund.
According to Fink and Goldstein, tokenization may deliver several benefits:
- Near-instant settlement of transactions
- Round-the-clock trading across borders
- Lower friction for both retail and institutional investors
- Fractional ownership for greater accessibility
Regulation and Infrastructure Still Matter
Despite its promise, tokenization still faces obstacles. The executives note that regulators must develop clear rules to support safe adoption. They also highlight the need for strong identity verification, compliance systems, and smooth integration between blockchains and traditional financial networks. Without these elements, the full potential of tokenized markets may stay out of reach.
If these challenges are addressed, the shift could redefine market plumbing itself. It may change how capital flows, clears, and settles across the world. That would mark a major structural shift that could influence liquidity and market access for decades.
