Blackrock, BLK, CEO Larry Fink says I want the SEC to rapidly approve the tokenization of bonds and stocks

Larry Fink, CEO of BlackRock, one of the world’s largest asset management firms, has urged the U.S. Securities and Exchange Commission (SEC) to approve the tokenization of stocks and bonds. In a recent interview, Fink emphasized that such a move would “simplify” access to tokenized digital assets for financial institutions and their clients.

Appearing on CNBC’s Squawk Box earlier today, Fink discussed various topics, including the state of the U.S. economy. When asked about investing in memecoins, Fink dismissed the idea but reaffirmed his strong belief in cryptocurrency, blockchain technology, and the potential of tokenization.

“I want the SEC to move quickly in approving the tokenization of bonds and stocks,” Fink stated. “This is the kind of financial innovation that the market urgently needs.”

Fink’s position was echoed by Binance’s former CEO and co-founder, who took to X (formerly Twitter) to call tokenized equities “a major benefit for U.S. markets.”

BlackRock Embraces Blockchain and Tokenization

BlackRock’s enthusiasm for blockchain technology aligns with broader trends in the financial sector. A whitepaper released in October 2024 by The Boston Consulting Group (BCG), Aptos Labs, and Invesco, titled Tokenized Funds: The Third Revolution in Asset Management Decoded, highlighted the rapid growth of tokenized funds.

By late 2024, tokenized funds had surpassed $2 billion in assets under management, with contributions from major players like BlackRock, Franklin Templeton, and WisdomTree.

“By enabling near-instant transactions, unlocking liquidity, and minimizing operational inefficiencies, tokenization could generate an additional $100 billion annually in returns for investors while opening new revenue opportunities for financial institutions,” said Sean Park, a senior partner at BCG.

BlackRock has been at the forefront of incorporating crypto and blockchain solutions into traditional finance, notably pushing for a spot bitcoin exchange-traded fund (ETF) in 2023.

Bitcoin ETF Success

In January 2024, several spot bitcoin ETFs debuted, with BlackRock’s iShares Bitcoin Trust (IBIT) quickly becoming one of the most popular options. By November, spot bitcoin ETFs collectively managed over $100 billion in net assets, with IBIT accounting for more than $60 billion.

Fink attributed the growing demand for bitcoin to inflation concerns and rising government expenditures. “During the pandemic, governments ramped up stimulus spending, leading to fears of currency debasement,” he explained.

For investors seeking to preserve their wealth, Fink described bitcoin as a viable solution. “If you’re worried about the debasement of your currency, bitcoin provides a globally accessible instrument to address those fears.”