BlackRock the biggest asset manager in the world is investigating the ‘tokenization of equities’

In a letter to investors issued on March 17, 2023, Larry Fink, chairman, and chief executive officer of BlackRock, the world’s biggest asset manager, emphasized the exciting advances occurring in the digital assets sector.

Despite the fact that Bitcoin has received a great deal of media attention over the last year, Larry Fink emphasized that exciting events are occurring outside of the media.

According to Mr. Fink, in a number of growing areas, such as India, Brazil, and portions of Africa, there are significant advancements in digital payments, which are reducing costs and expanding financial inclusion. But, according to the CEO of BlackRock, innovation is behind in the United States, resulting in increased payment prices. He said:

“In many developing areas, such as India, Brazil, and portions of Africa, we are seeing tremendous advancements in digital payments, which are reducing costs and expanding financial inclusion. In contrast, many developed economies, particularly the United States, lagging behind in innovation, resulting in much higher payment costs.”

The chairman also underlined the potential for the tokenization of asset classes to increase capital market efficiency, reduce value chains, and enhance investor cost and access.

Mr. Fink said that the tokenization of assets has the potential to change the asset management sector and create fascinating uses for the underlying digital asset technology. Also, he said that BlackRock is actively investigating the “tokenization of equities.”

BlackRock continues to investigate the digital assets ecosystem, focusing on client-centric areas like permissioned blockchains and the tokenization of stocks and bonds, Larry Fink declared.

In addition, the head of the investment firm highlighted that BlackRock is positive about the potential of digital assets, despite the market’s higher risks and the need for regulation.

The organization thinks that the sector is evolving and that the operational potential of the underlying technology will continue to provide new prospects.

Also Read: SVB Research Indicates More Than 186 US Banks Can Fail