We may not yet realize that the investment methods in our hands are about to become obsolete. Why? Because the high thresholds of traditional financial markets are limiting our investment potential. However, BlackRock is launching a financial revolution, and the core of this revolution is asset tokenization.
Do you feel that assets are difficult to flow freely, investment channels are limited, and constrained by the high thresholds and opacity of the traditional financial system? The asset tokenization that BlackRock focuses on can help solve these problems, providing you with unprecedented investment freedom through technological innovation.
Why is BlackRock betting on asset tokenization?
I. BlackRock's Asset Tokenization Strategy
BlackRock is fully deploying its strategy in the asset tokenization industry, not just because of trends, but due to its clear strategic vision. CEO Larry Fink publicly and strongly supports tokenization, emphasizing that it will profoundly change the infrastructure of the financial world. As part of its strategic layout, BlackRock is actively investing in leading blockchain infrastructure companies like Coinbase to solidify its foundation in the digital asset industry.
In terms of financial products, BlackRock has launched a Bitcoin spot ETF and is actively advancing the tokenization of money market fund projects (BUIDL). In addition, it has been actively exploring the tokenization industry in US stocks and plans to launch a dedicated stablecoin USDB to further solidify its leading position in the digital finance industry. BlackRock has consistently emphasized the complete integration of cryptocurrencies into the traditional financial management system, with a clear vision pointing towards comprehensive tokenization of asset issuance, trading, and management.
BlackRock's asset tokenization strategy embodies three core characteristics:
Reconstruction of infrastructure: BlackRock invests in blockchain infrastructure and seamlessly connects traditional asset management with on-chain asset real-time management through a partnership with Coinbase to launch institutional-grade crypto asset custody services.
Global regulatory layout: BlackRock has obtained crypto asset licenses in relevant regions such as Europe and has partnered with Middle Eastern sovereign wealth funds to build private investment platforms, creating a global compliance network to ensure the legality and global circulation of asset tokenization.
Scenario-based innovative products: By tokenizing traditional high-threshold private assets (such as government bonds, funds, infrastructure, etc.), breaking them down into more easily tradable digital tokens, reaching a broad market of retail and pension accounts, achieving true investment democratization.
II. Larry Fink's 2025 Annual Letter to Investors
BlackRock CEO Larry Fink clearly stated that asset tokenization is the most disruptive financial innovation since the birth of ETFs. Larry stated, 'Tokenization is democratization.' He emphasized that tokenization enables real-time on-chain settlement of stocks, bonds, and real estate, fundamentally solving the issue of capital freeze caused by the slow settlement in traditional finance, allowing capital to flow seamlessly 24 hours a day.
More importantly, Larry pointed out that asset tokenization can build a more inclusive financial ecosystem, allowing ordinary investors to participate in high-value investment industries that were previously exclusive to institutions. At the same time, smart contract technology will also enhance governance transparency. Larry calls for the global establishment of an efficient digital identity system to unlock a trillion-dollar potential market.
From other content in this letter, it is not difficult to see that BlackRock's understanding and strategic intent regarding tokenization is very clear; it is all about tokenization and asset redistribution.
Image source: BlockBeats
III. Strategic layout from institutional hegemony to retail democratization
As a giant asset management company managing over $10 trillion in assets, BlackRock has historically dominated the institutional market. However, it now aims to strategically transform through tokenization technology to become a leader in the global retail market. Starting with billions of dollars in Bitcoin spot ETFs, to over a billion dollars in tokenized money market funds BUIDL, and also connecting with multiple DeFi platforms, while actively promoting the tokenization of US stocks, it is planning at least a trillion-scale BlackRock stablecoin USDB based on asset management product pledges. All of this represents a clear roadmap and firm strategic goals.
Through asset tokenization, BlackRock can achieve the democratization of institutional market assets, enabling retail investors to directly participate in markets previously monopolized by institutions. The statement 'Tokenization is democratization' is essentially an important strategy for BlackRock to attract retail investors. Meanwhile, the launch of the digital identity system and stablecoin USDB further demonstrates BlackRock's ambition to fundamentally change the global investment landscape.
IV. The revolution of RWA and AI
The core technological innovation of Real World Asset tokenization (RWA) is fundamentally different from the revolutionary Web3.0. It is capable of upgrading traditional financial markets and financial assets without the reckless disregard of Web3.0. This Web2.5 state perfectly meets and drives the establishment of new production relationships.
Reconstruction of production relationships: The essence of RWA is the digital asset redistribution of production relationships, further achieving the full automation of real-world asset issuance, pricing, and trading with the help of AI technology. For example, through DePIN and AI technology, a decentralized underlying asset pool is formed, and smart contracts generate real-time risk ratings, replacing traditional manual due diligence and significantly improving efficiency.
Decentralized infrastructure: The Depin network connects global green electricity and computing power, as well as all people, devices, and physical assets through AI agents, with processing capabilities far exceeding traditional SWIFT systems, achieving real-time settlement for high-frequency trading.
Closed-loop liquidity ecosystem: Achieving full-process integration of asset tokenization through AI intelligence, quickly switching between decentralized exchanges (DEX) and centralized exchanges (CEX), achieving round-the-clock asset liquidity while directly reaching retail users.
Traditional financial institutions represented by BlackRock, which are keen on innovation, act like a waking aristocratic family in the power play of RWA, leveraging their deep reserves and vast assets and resources, intending to integrate RWA technology into their ecosystem. Future competition will revolve around digital identity standards, asset tokenization standards, and on-chain data sovereignty.
RWA: An inevitable trend in the next generation of digital financial market systems
BlackRock represents the rule-maker in asset tokenization, committed to consolidating the existing financial order through technological upgrades. At the same time, there are many underlying technology innovators trying to completely restructure financial infrastructure through disruptive technological innovations. In the power play of RWA, there will be forces of aristocratic families turning their guns around, and there will certainly be grassroots rebels, intertwining and driving RWA to spiral upward.
In the future, the development of asset tokenization will present a dual-track competitive landscape where traditional financial institutions dominate the compliance ecosystem, while technology innovation companies control the underlying infrastructure. This financial revolution driven by technology and capital will determine the power structure of global financial markets in the next decade.
Conclusion: Investment democratization/inclusivity is imminent; are you ready? BlackRock's asset tokenization strategy provides you with a gateway to global investment opportunities, so don't miss this wave of investment revolution. Act now to make your investments freer and more potential!
This article is authorized for reproduction from: (BlockBeats)
Original author: Ye Kai
'Is tokenization democratization? An in-depth analysis of BlackRock's RWA strategy: Understanding the next generation of digital financial trends' was first published in 'Crypto City'.
