BlackRock CEO: The scale of cryptocurrency wallets exceeds $4 trillion, and "asset tokenization" is the next "financial revolution."
BlackRock revealed that its goal is to bring traditional investment products such as stocks and bonds into digital wallets, a ecosystem worth over $40 trillion.Original Author: Long Yue, Wall Street Journal
Larry Fink, the CEO of the world's largest asset management company BlackRock, has positioned "asset tokenization" as the next revolution in financial markets, aiming to "put all traditional financial assets into digital wallets."
On October 14, during the company's latest Q3 2025 earnings call, BlackRock not only announced that its assets under management (AUM) reached a record $13.5 trillion, but Fink also clearly pointed out the company's key direction for the future. According to him, the asset scale held in global digital wallets has reached approximately $4.1 trillion, representing a huge potential market.
Fink's vision is to bridge the gap between traditional capital markets and a new generation of tech-savvy investors by tokenizing traditional investment tools such as exchange-traded funds (ETFs).
"This is the next wave of opportunity for BlackRock over the next few decades," Fink stated in an interview with CNBC. This strategy has been preliminarily validated through the success of its iShares Bitcoin Trust (IBIT), which surpassed $10 billion in assets in less than 450 days, becoming the fastest-growing ETF in history.
This forward-looking layout has quickly received positive feedback from Wall Street. Investment bank Morgan Stanley reiterated its "overweight" rating on BlackRock stock in a research report, noting that "the tokenization of all assets" is one of the core narratives supporting its optimistic outlook on BlackRock.
Targeting the $4 Trillion Digital Wallet Market
The core of BlackRock's strategy is to reach the vast pool of funds currently outside the traditional financial system. According to Fink, the size of this digital wallet market is approximately $4.1 trillion.
Morgan Stanley's report released on October 15 estimated that the total value of current crypto assets, stablecoins, and tokenized assets has exceeded $4.5 trillion, and these funds "are currently inaccessible to long-term investment products."
According to Morgan Stanley's analysis, BlackRock's goal is to "replicate everything in today's traditional finance into digital wallets."
By achieving this goal, BlackRock can introduce young investors accustomed to using tokenized assets to more traditional asset classes such as stocks and bonds, providing them with long-term retirement savings opportunities.
Fink believes that tokenization can also reduce transaction costs and intermediary fees, for example, in areas like real estate.
Asset Tokenization: The Future Vision of Finance
Fink firmly believes that the next major transformation in global finance will come from the tokenization of traditional assets, including stocks, bonds, and real estate. In an interview, he stated that the company views tokenization as an opportunity to bring new investors into mainstream financial products through digital means.
Fink pointed out that although the potential for tokenization is enormous, it is still in the early stages of development. He cited research from Mordor Intelligence predicting that the market size for tokenized assets will exceed $2 trillion by 2025 and is expected to soar to over $13 trillion by 2030.
BlackRock is laying the groundwork for deeper involvement in this field. Internal teams are actively exploring new tokenization strategies to solidify its leadership position in digital asset management.
From Bitcoin Skeptic to Blockchain Advocate
Fink's shift in attitude towards digital assets marks the evolution of mainstream financial institutions' views on the field. He once referred to Bitcoin as a "money laundering index," but his stance has now changed dramatically.
In a recent interview, Fink acknowledged that his views have changed. He told CNBC, "I used to be a critic, but I have grown and learned."
He now compares crypto assets to gold, believing they can serve as an alternative investment for portfolio diversification.
Wall Street Optimistic About the Growth Prospects of "Tokenization"
Wall Street analysts believe that BlackRock, with its industry position and resources, is fully capable of dominating the tokenization space.
Morgan Stanley analyst Michael J. Cyprys raised BlackRock's target stock price to $1,486 in the report, emphasizing that its "grand vision of tokenizing all assets" is a key driver.
The report noted that BlackRock has already experimented with its tokenized money market fund BUIDL, which has grown to nearly $3 billion in assets under management since its launch in March 2024.
Morgan Stanley believes that with strategic focus starting from the highest management level, company scale, extensive business footprint, and client relationships, BlackRock has the ability to influence the future industry structure and collaborate with leading exchanges and providers to execute and offer tokenized BlackRock products.
BlackRock seeks to tokenize traditional assets as a bridge connecting traditional capital markets and digital assets. Tokenization has the potential to bring traditional assets into the native paradigm of digital wallets—currently, over $4.5 trillion in crypto assets, stablecoins, and tokenized assets are inaccessible to long-term investment products.
BlackRock's goal is to replicate everything in today's traditional finance into digital wallets, allowing investors to build a long-term, high-quality investment portfolio that includes stocks, bonds, cryptocurrencies, commodities, and more, without ever needing to leave their digital wallets.
By achieving this, BlackRock can guide a large number of young investors who use tokenized assets towards more traditional assets and prepare them for future long-term retirement savings opportunities.
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