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- BlackRock CEO believes the recent ETF approval is a first step towards a technological financial revolution.
- According to the CEO, the next step would be the tokenization of every financial asset.
- BlackRock, Grayscale, and Fidelity dominated trading volumes in the early stages of the ETF launch.
BlackRock CEO Larry Fink believes the recent ETF approval by the U.S. Securities and Exchange Commission (SEC) is a first step towards a technological financial revolution in the financial markets. Fink said this during a television interview on the CNBC news channel.
“ETFs are step one in the technological revolution in the financial markets. Step two is going to be the tokenization of every financial asset”—Larry Fink, CEO of @BlackRock on @CNBC. pic.twitter.com/KAqgaLAApk— Chainlink (@chainlink) January 12, 2024
The CEO also noted that the next step that would follow ETFs’ actualization would be the tokenization of every financial asset. He said:
“ETFs are step one in the technological revolution in the financial markets. Step two is going to be the tokenization of every financial asset.”
BlackRock is an American multinational investment company and one of the financial institutions whose ETF, iShares Bitcoin Trust (IBIT.O), was recently approved by the SEC. Trading of the spot Bitcoin ETFs kicked off hours after approval, with BlackRock, Grayscale, and Fidelity dominating trading volumes in the early stages, according to reports.
Fink’s idea about Real-World Assets (RWAs) tokenization aligns with the position of Chainlink, a decentralized blockchain oracle network built on Ethereum, on fintech evolution. In a recent publication, the blockchain company noted that RWA tokenization is one of the largest market opportunities in the blockchain industry, with a potential market size in the hundreds of trillions of dollars.
Chainlink noted that anything of value can be tokenized and brought on-chain. Hence, it considers the tokenized RWAs a growing market segment in the digital asset industry. The blockchain company noted that an increasing number of projects are looking to tokenize a wide variety of assets, including cash, commodities, real estate, and much more.
Asset tokenization is considered one of the most promising use cases of blockchain technology. Users believe its potential market size encompasses nearly all human economic activity.
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