BlackRock, the world’s largest asset management company, is exploring the potential of digital assets, particularly the tokenization of asset classes, as noted by CEO Larry Fink in a recent letter to investors.
Mr. Fink highlighted the advancements happening in emerging markets, particularly in digital payments, which are advancing financial inclusion and lowering costs.
He also noted the potential of tokenization of assets, which could revolutionize the asset management industry, shorten value chains, and improve cost and access for investors.
BlackRock is actively exploring the tokenization of stocks and bonds, particularly in areas most relevant to their clients, such as permissioned blockchains.
While acknowledging the risks associated with the cryptocurrency market, Mr. Fink expressed optimism about the potential of digital assets, noting that the industry is maturing and offering exciting opportunities for the underlying technologies.
The chairman also highlighted the need for innovation in developed markets, particularly the United States, where there is a lag in innovation, resulting in higher payments.
Mr. Fink suggested that dramatic advances in digital payments in emerging markets, such as India, Brazil, and parts of Africa, are bringing down costs and advancing financial inclusion.