According to BlackRock executives, tokenization technology, which uses blockchains to record ownership rights in digital form, is becoming the next stage in the evolution of financial markets. It allows virtually any asset, from real estate to corporate debt, to be converted into digital tokens that can be transferred between market participants faster, cheaper, and more securely.
BlackRock’s Larry Fink and Rob Goldstein stated in an article for The Economist that tokenization could radically upgrade financial infrastructure, speeding settlements to near-instant operations and widening access to illiquid assets. They noted that over the past 20 months, the market for tokenized real-world assets (RWA) has grown by roughly 300%.
The article points out that back in 1976, exchange trades were arranged over the phone, with confirmations delivered by courier. The launch of SWIFT in 1977 reduced settlement times from several days to minutes. Today, transactions between New York and London execute within milliseconds, yet global markets still operate on different settlement cycles, creating counterparty risk. Tokenization, the authors argue, can eliminate this gap. Instant delivery-versus-payment could become the norm across all markets.
Another key effect, according to BlackRock’s leadership, is private asset market digitalization, which remains one of the most paper-heavy segments of finance. Through tokenization, illiquid assets — large real estate or infrastructure holdings — can be broken into smaller tokens, significantly lowering entry barriers for investors and reducing transaction costs. Currently, around three-quarters of crypto-asset holders live outside Western countries, and the fastest adoption of tokenization is taking place in emerging economies.
Although major stablecoin issuers and many tech companies are based in the U.S., the authors warn that American leadership in this sphere isn’t guaranteed. They compare the current stage of development to the internet in 1996, when Amazon was selling books with $16 million in revenue and most major tech giants hadn’t yet been founded. According to similar forecasts, the tokenization sector could grow much faster than market participants expect.
BlackRock executives emphasize that tokenization won’t replace the existing financial system but will act as a “bridge” connecting traditional institutions with digital innovations, from stablecoins to public blockchains. In the future, investors may be able to store stocks, bonds, and digital assets in a single digital wallet. This will require an updated regulatory framework — unified risk standards, consumer protection, counterparty requirements, and digital identity systems.
The authors remind readers that historical crises, such as the crash of 1929, partly resulted from technological lag in market infrastructure. In their view, tokenization can eliminate slow and costly operations, but it must be introduced alongside stronger safeguards. Fink and Goldstein believe that achieving the right balance between “speed and security” is what will move global markets to a new level of accessibility and efficiency.
SWIFT is actively working on integrating blockchain technologies into its system to enable real-time, round-the-clock cross-border payments, including those involving tokenized assets.
