BlackRock CEO says tokenization is “like the internet” in 1996

BlackRock CEO Larry Fink said tokenization could reshape capital markets much like the internet did in 1996. In his annual shareholder letter, he argued the current U.S. financial system benefits too few people, linking inequality and low capital-market participation to structural weaknesses. Fink’s core claim: tokenization can expand market access and improve efficiency. He said digital ownership of securities (such as bonds, ETFs, and fractional interests) may make issuing, trading, and holding assets faster and cheaper, reducing friction in conventional workflows. He also suggested today’s digital-wallet usage could evolve into investment platforms where users hold tokenized ETFs, bonds, and fractional exposures. Fink warned adoption will likely be gradual, and urged policymakers to build a framework that supports innovation while protecting investors. He highlighted the need for standards around digital identity, counterparty risk, and controls against illicit activity. Regulation is moving in parallel. The U.S. House Financial Services Committee is set to hold a hearing, “Tokenization and the Future of Securities: Modernizing Our Capital Markets,” with Blockchain Association CEO Summer Mersinger scheduled to testify. Separately, the U.S. SEC approved Nasdaq’s pilot for tokenized versions of selected securities. Under the Nasdaq program, tokenized trading will cover certain Russell 1000 stocks and index ETFs, while preserving existing market infrastructure. For traders, this links tokenization hype to concrete regulatory steps—raising attention on liquid tokenized products, exchange infrastructure, and related market-structure changes.