BlackRock CEO Larry Fink challenges the SEC to approve tokenization of bonds and stocks

Larry Fink, CEO of financial asset management firm BlackRock, has asked the U.S. Securities and Exchange Commission (SEC) to greenlight the approvals of tokenized stocks and bonds. Speaking in a recent interview, Fink explained how such a move would “make it easier” for financial institutions to offer clients tokenized digital assets. 

Earlier today, CNBC’s Squawk Box hosted Fink to discuss several matters, including the state of the US economy. When asked whether he had plans to invest in memecoins, the CEO said he was not a fan but admitted that he was a “huge believer” of crypto, blockchain technology, and tokenization.

“I want the SEC to rapidly approve the tokenization of bonds and stocks,” Fink remarked. “Those are the types of financial reforms the market desperately needs.” 

His sentiments were supported by Binance’s former CEO and co-founder, who told his followers on X that the tokenization of equities is “hugely beneficial for US markets.”

BlackRock open to blockchain capabilities, continues ETF support

In October 2024, The Boston Consulting Group (BCG), Aptos Labs, and Invesco released a whitepaper dubbed “Tokenized Funds: The Third Revolution in Asset Management Decoded.”

The document stated that by late 2024, tokenized funds had already amassed over $2 billion in assets under management, with contributions from BlackRock, Franklin Templeton, and WisdomTree.

“By enabling near-instant transactions, unlocking liquidity, and reducing operational friction, this innovation could generate about US$100 billion in additional annual returns for investors while creating new revenue streams for financial institutions,” denoted Sean Park, a senior partner at BCG. 

BlackRock has been at the forefront of crypto and blockchain adoption among traditional financial institutions, aggressively pushing for a spot bitcoin ETF in 2023.

In January 2024, a fleet of these funds launched, with BlackRock’s iShares Bitcoin Trust (IBIT) becoming one of the most sought-after investment vehicles. By November, spot bitcoin ETFs reached $100 billion in net assets, with IBIT managing over $60 billion.

CEO Fink linked the growing popularity of bitcoin to heightened inflation fears and government spending. “Governments ramped up stimulus measures during the pandemic, leading to concerns about currency debasement,” he explained. 

He reiterated that Bitcoin offers a potential solution for investors seeking to safeguard their wealth. “If you’re frightened of the debasement of your currency, bitcoin provides an internationally based instrument to overcome those local fears.”

BlackRock head: Trump’s private sector capital flow policy is risky

During his CNBC interview, Fink also talked about President Donald Trump’s proposed plan to deploy large amounts of private capital into the U.S. economy. He believes that although that may lead to the economy’s “enormous growth,” it could create inflationary pressures. 

“There are some very large inflationary pressures that we all have to be aware of…there is a scenario where we’re going to have much more elevated interest rates because of inflation. And that’s going to have a very negative impact on the equity market.”

He projected that the 10-year Treasury yield, currently around 4.62%, could climb to 5% or even 5.5% if inflation surges, which he mentioned would ‘shock’ the stock market.

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