- Fink says tokenizing assets can remove intermediaries, shorten settlement cycles and lower transaction costs.
- $4.1T is in digital wallets, but fees and delays block entry into markets; tokenization keeps capital in one flow.
- A single digital account could hold cash, stocks and bonds, simplifying investing without changing products.
BlackRock CEO Larry Fink outlined how digital assets could reshape financial markets. Fink said technology can reduce costs and widen investor access. He focused on how digitized assets could remove barriers, shorten processes, and simplify investing through integrated digital systems.
Digitizing Assets to Remove Market Friction
According to Larry Fink, financial services still rely on layers of intermediaries that slow transactions. Notably, he pointed to elongated settlement cycles across stocks and bonds. However, he said digitizing assets could streamline these steps and reduce unnecessary processing.
Fink explained that tokenization allows assets to move directly between digital systems. Consequently, investors could shift value from cash or stablecoins into securities more efficiently. He added that most exposure would still occur through exchange-traded funds.
This structure, however, focuses on reducing transaction costs rather than changing investment products. As a result, tokenization targets infrastructure, not market behavior. That distinction frames how technology reshapes financial services operations.
Stablecoin Wallets and Investment Barriers
Also, Fink highlighted the scale of funds already held digitally. Notably, he cited $4.1 trillion stored globally in digital wallets, mainly stablecoins. However, moving that capital into traditional assets remains costly.
He said investors must exit digital wallets to use traditional financial systems. Consequently, they face commissions, fees, and added delays. These steps, according to Fink, limit how easily digital capital enters broader markets.
Tokenization, therefore, aims to keep funds within a single digital flow. That approach reduces handoffs between systems. It also lowers friction that currently discourages frequent asset movement.
One Digital Account for Multiple Assets
Fink then described how tokenization could unify investment activity. He said a single digital account could manage cash, stocks, bonds, and real estate tokens. Notably, he referenced remarks by Secretary Besson on account-level integration.
Through an app-based structure, investors could complete transactions without switching platforms. However, the focus remains on process efficiency rather than product expansion. Fink stressed ease, simplicity, and faster execution.
By digitizing assets, financial services could operate with fewer manual steps. Consequently, investing becomes more accessible within existing market frameworks. The emphasis, according to Fink, stays on reducing friction across every transaction stage.
