BlackRock CEO: Asset tokenization is the biggest transformation in finance's future, optimistic about Decentralized Finance but concerned about the US dollar.

The CEO of BlackRock, the world's largest asset manager, predicts asset tokenization will be the next financial revolution and warns that U.S. debt could allow digital assets such as bitcoin to replace the dollar. (Synopsis: BlackRock CEO: If the U.S. debt deficit cannot solve "bitcoin will replace the dollar", tokenization is democratization) (Background supplement: Alpha Nuggets claims to be BlackRock on the chain, how "Reserve protocol" leads the trend of the RWA track) Larry Fink, CEO of BlackRock, the world's largest asset manager, pointed out in an annual letter published on Monday that asset tokenization is a follow-up The most disruptive financial innovation since ETFs (exchange-traded funds) is expected to reshape the global financial system and democratize finance. In his letter, Fink elaborates on the far-reaching impact of tokenization on capital markets: First, asset tokenization will disrupt the existing settlement system. Fink describes the SWIFT system as a fax machine for e-mail. Tokenization will enable real-time on-chain clearing of assets, such as stocks, bonds, and real estate, releasing hundreds of billions of dollars of liquidity frozen due to settlement delays, and enabling global capital to achieve "24/×7 frictionless flow". Second, tokenization will help build an inclusive financial infrastructure. By allowing assets to be split indefinitely, such as the ownership of a millionth building, the average investor will be exposed for the first time to exclusive areas such as private equity, which has traditionally been reserved for institutional investors. At the same time, the automatic execution of smart contracts will enhance shareholder voting and corporate governance participation, break through traditional investment barriers, and allow more investors to share high-yield opportunities. In particular, Fink emphasized that digital identity authentication will be the key to whether asset tokenization can become mainstream. He mentioned that for tokenized funds to become mainstream, a more reliable identity system must be established than SWIFT. He singled out India's Aadhaar system, which covers 90% of the population and enables mobile authentication, and called for global collaboration to build a compliant digital identity framework that will be key to unlocking the trillion-dollar tokenized market. BlackRock CEO: Warns of the risks of bitcoin replacing the dollar Fink warned that the growing national debt of the United States could threaten the dollar's status as a global reserve currency. He said the situation presents an opportunity for alternative assets such as bitcoin. If the U.S. can't control the national debt, Americans may turn to Bitcoin instead of the U.S. dollar in the future. —Larry Fink The U.S. national debt has exceeded $36 trillion, far exceeding the country's gross domestic product (GDP), which means the U.S. economy is under severe pressure. Fink wrote in his annual shareholder letter: If the U.S. can't control its debt, if the deficit continues to balloon, the U.S. could lose its status as a global reserve currency and replace it with a digital asset like Bitcoin. While Fink stressed that he is not a critic of cryptocurrencies and has a positive view of decentralized finance (DeFi), he worries that declining confidence in the dollar could provide opportunities for alternatives such as Bitcoin. "If investors begin to see Bitcoin as a safer option than the U.S. dollar, this innovation could undermine the economic advantage of the United States," he wrote. Fink's view aligns with a growing number of financiers and industry groups who are concerned about growing U.S. debt. Moody's credit rating agency lowered its outlook for U.S. debt earlier this month due to the Trump administration's aggressive tariffs and funding of unclear-cut tax cuts. The Future of Asset Tokenization: Breaking Through the Identity Barrier Fink again predicts that tokenized versions of traditional financial assets will become as ubiquitous as ETFs. As traditional assets such as stocks and bonds are tokenized through blockchain technology, markets will never close and settlement times will be reduced from days to seconds. He said: "The billions of dollars currently frozen by the delay in settlement can be immediately reinvested in the economy and promote more growth. However, Fink notes that before that happens, the big challenge for tokenized assets is the issue of investor authentication. Fink said: If we can solve a key problem – identity verification – tokenized funds will be as well-known to investors as ETFs. Related reports BlackRock CEO: If the U.S. debt deficit cannot solve "bitcoin will replace the dollar", tokenization is democratization Alpha Nuggets is known as BlackRock on the chain, how "Reserve protocol" leads the trend of the RWA track BlackRock launched its first bitcoin fund "IB1T" in Europe, can it replicate the miracle of BTC ETFs in the United States? "BlackRock CEO: Asset tokenization is the biggest change in the future of finance, optimistic about DeFi but worried about the dollar" This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".