Larry Fink Says Tokenization Is the Next Phase of Finance

• BlackRock CEO Larry Fink said that tokenization is still in the building phase.
• Tokenization shifts asset ownership to digital ledgers, enabling near-instant settlement.
• Digital wallets could unify assets like payments, bonds, ETFs, and private equity.

In his 2026 chairman’s letter, BlackRock CEO Larry Fink compared tokenization to the internet in 1996, a period that was defined by infrastructure, not adoption. He added that systems are being built before mass usage arrives.

Fink stated that tokenization is “necessary, not optional.” He placed it ahead of interest rates and inflation as a structural priority. The focus is not price but market plumbing.

BlackRock is already well-positioned, as the firm manages nearly $150 billion tied to digital assets, including $65 billion in stablecoin reserves and nearly $80 billion in digital asset ETPs. Its tokenized treasury fund is the largest globally.

Tokenization Targets Speed, Cost, and Access

The core change is to move asset ownership onto digital ledgers, which reduces settlement time from days to near-instant. It cuts intermediaries and lowers costs, expanding access.

Fink’s model is focused on digital wallets. A single wallet could hold payments, bonds, ETFs, and fractional ownership in private assets, which removes entry barriers that currently limit participation.

Faster transactions at lower cost would result in more participants in markets. Fink also tied this to inequality. Current systems favor existing asset holders, and tokenization opens access to users who were previously locked out of capital markets.

Exchanges and Institutions Move in Parallel

Meanwhile, Nasdaq has received approval to launch tokenized securities trading, with settlement handled on blockchain rails. The New York Stock Exchange is building a 24/7 trading platform with instant settlement.

Kraken has already processed over $25 billion in tokenized stock volume. At the clearing layer, DTCC is preparing a tokenization pilot covering major equities and US Treasuries.

SWIFT has enabled on-chain triggers for asset movements. JPMorgan’s Kinexys platform has processed over $1.5 trillion in notional value and now handles more than $2 billion daily. 

These systems are live or near launch, and settlement is shifting from T+2 cycles to real-time execution.

However, asset managers are not waiting for full rollout. BlackRock’s tokenized treasury fund leads globally. Franklin Templeton’s on-chain money fund holds around $594 million. Fidelity’s digital treasury fund crossed $300 million in assets.

Tokenized real-world assets have grown from $5 billion in 2022 to over $29 billion by late 2025. Tokenized US Treasuries alone reached $7.5 billion. 

Related: Larry Fink Declares the ‘Great Repotting’: BlackRock’s Plan to Move All of TradFi On-Chain