Dec 8, 2025 10:51

• Larry Fink and Rob Goldstein published a paper on RWA. 
• BlackRock management believes that this technology will change the existing market infrastructure. 
• But to do this, it needs regulatory support and appropriate consumer protection measures. 

---

BlackRock CEO and COO Larry Fink and Rob Goldstein published an article for The Economist on the prospects of tokenization. They consider it a revolutionary technology that could reshape market infrastructure. 

Fink and Goldstein believe that the financial market is on the cusp of its next major transformation. Its main driving force, according to the article, is the tokenization of real-world assets (RWA). 

BlackRock compared this technology to the SWIFT system, whose introduction in 1977 standardized the exchange of banking information and reduced transaction processing times. 

Fink and Goldstein, however, distinguish tokenization from cryptoassets in general. The latter "looked like speculation," which initially prevented the TradFi industry from fully appreciating the potential of tokenization. 

At the same time, BlackRock is confident that this technology will become the next driver of large-scale changes in market infrastructure, as it offers two important advantages:

• standardization of instant settlements in global markets;
• Replacing paper documentation with electronic ones will allow, among other things, the replacement of large, unlisted assets, such as real estate, with mobile and accessible units. 

According to the article, the first sign that the transformation has already begun is the growth of the RWA sector. Over the past 20 months, the sector has grown by 300%, Fink and Goldstein emphasized.

However, the authors noted that this is a lengthy and complex process, so tokenization will not immediately replace the existing infrastructure. A more likely scenario is one of slow synergy:

"In the future, people won't hold stocks and bonds in one portfolio and cryptocurrency in another. One day, all types of assets will be able to be bought, sold, and stored through a single digital wallet." 

The key factor for further implementation, according to the company's management, is the regulatory regime. Legislators shouldn't invent new rules for tokenization; it would be more appropriate to update the existing framework, the authors believe. 

At the same time, it is equally important to update security measures in a timely manner, which will help avoid possible “acute situations”. 

"Innovation requires safeguards: clear buyer protections to ensure the security and transparency of tokenized products; strict counterparty risk management standards to prevent the spread of shocks across platforms; and digital identity systems so that everyone can trade and invest with the same confidence they have when swiping cards or transferring money," the article states. 

It's worth noting that this isn't the first time Fink has spoken about the prospects of tokenization. He previously stated that this particular direction will become a key trend in the cryptosphere. 

And BlackRock is at the forefront of this movement. According to rumors, the company plans to tokenize its funds based on real assets.