- BlackRock sees tokenization as shared infrastructure linking traditional and digital finance.
- Institutions and blockchain firms are “learning to interoperate,” forming a two-sided market bridge.
- Clear, updated regulation is essential as tokenized and traditional assets converge across markets.
Tokenization is entering a new phase as global institutions move toward digital market structures. BlackRock leaders Larry Fink and Rob Goldstein now describe tokenization as the next step in modern market infrastructure, and they say it will connect traditional finance with digital networks.
BlackRock Leaders Call Tokenization a Core Part of Future Markets
Tokenization is shaping the next evolution of global markets. In The Economist, Larry Fink and Rob Goldstein discuss how tokenization can modernize market infrastructure, enhancing efficiency, transparency, and access by connecting traditional and digital finance. They say tokenization will not replace current systems, yet it will join them with digital networks through shared infrastructure.
They compare the change to a bridge built from both sides of a river. One side includes long-standing financial institutions, and the other includes stablecoin issuers, fintech firms, and public blockchains. They write that both groups are “learning to interoperate,” and they add that future investors may hold all assets in a single digital wallet.
BlackRock also notes that tokenization opens new areas for investment. They explain that earlier cycles made the idea harder to see, yet institutions now understand its value. The firm already manages the $2.8 billion BUIDL fund, which shows how tokenized cash products work on public chains and how institutions use them.
Regulation Needed as Tokenized and Traditional Markets Interact
Fink and Goldstein say updated rules are needed as tokenized markets grow. They argue that risk should be judged by nature and not by format, adding that “a bond is still a bond, even if it lives on a blockchain.” They point to bond ETFs as an example of how new structures can connect dealer markets with public exchanges.
They also note that spot Bitcoin ETFs place digital assets on traditional venues, which shows how systems can operate together. They say the same idea now applies to tokenized assets as use cases expand across markets.
BlackRock states that tokenization will help build shared infrastructure for the next phase of global finance. They add that this development depends on clear rules that allow both markets to operate safely as adoption grows.
