BlackRock CEO Larry Fink stated that tokenization is ushering in a new era in the development of financial infrastructure, similar to how the internet transformed the world in 1996. He believes this technology has the potential to overcome deep inequalities and expand access to investment opportunities for a broader segment of the population.
This is reported by Finway
Tokenization as the Foundation of the Future Financial System
Larry Fink emphasizes that the current financial system is predominantly focused on asset owners, while access to capital markets remains limited for many. He highlights that the gap between investors and other members of society is only widening. The implementation of tokenization has the potential to make investing as simple as everyday digital payments, allowing individuals to invest through their smartphones in a wide range of assets.
“Tokenization can radically simplify access to investments, making them as easy as digital payments. In the future, users will be able to invest through their smartphones, gaining access to a wide array of assets,” said the entrepreneur.
The head of BlackRock urges governments not to hinder the development of new technologies, but rather to implement clear and transparent rules for their application. Among the key conditions for market development, Fink identifies investor protection, risk management standards, and the implementation of digital identification to combat money laundering.
According to him, the transition to a new financial model has already begun, and the traditional system will not disappear overnight, but will gradually give way to new infrastructure. BlackRock is already actively involved in this process: the company manages approximately $150 billion in digital assets, oversees reserves of stablecoin issuers amounting to $65 billion, and around $80 billion in cryptocurrency ETFs.
Challenges for Capitalism and the Role of New Technologies
Fink also draws attention to the structural problems of the global economy. In his assessment, governments, corporations, and banks can no longer finance large-scale transformations on their own, particularly in the areas of energy, industry, and artificial intelligence. To address these challenges, it is necessary to change approaches and expand investment opportunities for a larger number of people.
Particularly, the U.S. pension system, including Social Security, requires special attention, according to the CEO of BlackRock. Without ensuring access to long-term market returns, these systems will not be able to remain sustainable. Fink emphasizes that increasing citizen participation in capital markets through new technologies will contribute to reducing economic inequality.
He notes that the development of digital wallets and financial instruments is already laying the groundwork for broader participation in capital markets. All of this, in his view, is gradually leading to the formation of a new financial infrastructure that will allow more people to grow alongside their countries.
