- Larry Fink says tokenization will change global finance, connecting currencies, ETFs, and assets through a digital layer.
- Central banks are exploring digital currency adoption and its implications for the dollar and global payment systems.
- Fink notes investors are changing to gold and crypto as “assets of fear” amid concerns over money and investment value.
BlackRock CEO Larry Fink has warned that the global financial system is on the brink of a major transformation as every asset, currency, and investment product moves toward digitization and tokenization.
Speaking at the Future Investment Initiative in Saudi Arabia, Fink said that while much of the world is focused on artificial intelligence, the financial industry faces a more immediate revolution in how money and assets are transferred, stored, and settled across borders.
He noted that the rapid pace of technological advancement is creating a new “global settlement layer” that will connect digital versions of currencies, exchange-traded funds (ETFs), and securities worldwide.
Central Banks Question Digital Currency Future
According to Fink, central banks are increasingly questioning their role in the emerging digital economy. They are exploring how quickly they should digitize their currencies and what this shift means for the U.S. dollar.
He added that these discussions extend to the future of traditional payment systems, raising questions about how companies like Visa and MasterCard might adapt to blockchain-based transfers.
Fink explained that many financial institutions are not yet ready for this change. He said the coming transformation will reshape the underlying infrastructure, or “plumbing,” of finance, influencing how transactions clear and settle globally. Notably, he emphasized that this change is accelerating faster than most policymakers and regulators realize.
Tokenization Set to Transform ETFs and Asset Movement
Fink described a near-future scenario where investors hold digital wallets capable of transferring ETFs and other financial instruments instantly. This, he said, will redefine accessibility and efficiency in global markets. The shift toward tokenization, representing real-world assets on blockchain networks is, in his view, inevitable and advancing rapidly across borders.
While AI dominates much of the technological conversation, Fink argued that digital asset tokenization deserves equal attention. He stated that its potential to streamline global finance rivals the impact AI has had in data and automation.
“Assets of Fear” Drive Interest in Gold and Crypto
Fink also commented on investor behavior in today’s uncertain environment. He said many are turning to gold and cryptocurrencies as “assets of fear.” According to him, this trend reflects growing anxiety over the declining value of traditional money and investments.
He further noted that about 30% to 35% of U.S. Treasury bonds are held by foreign investors. Any decline in that interest, he warned, could affect global liquidity, especially in systems heavily reliant on dollar-denominated assets.
