Former cryptocurrency skeptic and BlackRock CEO Larry Fink, along with chief operating officer Rob Goldstein, has reaffirmed strong support for tokenization, arguing that it will serve as a crucial connection point between traditional finance and the crypto sector. In an opinion piece published in The Economist on Monday, the two executives noted that tokenization is not set to replace the existing financial system anytime soon, but rather to help merge the two environments.

They likened tokenization to a construction project happening from both sides of a river. “Think of it instead as a bridge being built from both sides of a river, converging in the middle. On one side stand traditional institutions. On the other are digital-first innovators: stablecoin issuers, fintech’s and public blockchains,” they wrote.

The executives added that the two systems are not competing but learning to connect, envisioning a future in which “people won’t keep stocks and bonds in one portfolio and crypto in another. Assets of all kinds could one day be bought, sold and held through a single digital wallet.”

BlackRock, the world’s largest asset manager with over $13.4 trillion under management, has been steadily shifting toward digital assets despite Fink’s earlier skepticism.

Why tokenization is now being taken seriously

Fink and Goldstein said that early discussions around tokenization were overshadowed by the speculative nature of the crypto boom, which made it difficult to see the underlying value. Over time, however, traditional finance began recognizing that tokenization could significantly broaden the landscape of investable assets beyond the listed stocks and bonds that dominate markets today.

BlackRock is already active in this area, operating the largest tokenized cash market fund, the $2.8 billion BlackRock USD Institutional Digital Liquidity Fund (BUIDL), launched in March 2024.

A call for regulation that enables integration

The pair also stressed that tokenization needs to advance in a secure and well-regulated environment. They emphasized that policymakers must update existing frameworks so that traditional markets and tokenized markets can operate together effectively. They compared this evolution to the development of bond ETFs, which helped link dealer markets with public exchanges and improved trading efficiency.

They highlighted that the same pattern is now appearing with digital assets: “And now with spot Bitcoin ETFs, even digital assets are on traditional exchanges. Each of these innovations builds bridges. The same principle applies to tokenization.” Their message for regulators was clear: “Regulators should aim for consistency: risk should be judged by what it is, not how it’s packaged. A bond is still a bond, even if it lives on a blockchain.”

Sources:

https://www.economist.com/by-invitation/2025/12/01/larry-fink-and-rob-goldstein-on-how-tokenisation-could-transform-finance

https://cointelegraph.com/news/blackrock-tokenization-bridge-crypto-traditional-finance

https://x.com/BlackRock/status/1995537254022869438