BlackRock CEO sends strongest signal at Davos: Tokenization is a done deal

Recently, at the Davos World Economic Forum, BlackRock CEO Larry Fink shared his latest views on crypto assets and tokenization. He believes that the digital transformation of assets into tokenized forms is not only necessary but should be acted upon swiftly. This is not merely an expression of opinion but a strategic judgment by the world’s largest asset management firm regarding the future financial system. More notably, BlackRock has already validated this vision through concrete actions—its flagship tokenization fund BUIDL is built on Ethereum.

Larry Fink’s Core Viewpoint: Why Tokenization Is Unavoidable

Three Key Reasons

Fink points out that if all investments are conducted on tokenization platforms, three changes will occur:

• Lower costs: Capital flows seamlessly between money market funds, stocks, and bonds, significantly reducing intermediary costs
• Increased democratization: More people can participate in investments with lower barriers
• Reduced corruption: A universal blockchain can enhance transaction transparency

While these ideas seem idealistic, they reflect underlying pain points in the traditional financial system. Currently, global capital markets face high clearing and settlement costs, fragmented cross-market liquidity, and numerous intermediaries—tokenization offers a systematic solution to these issues.

BlackRock’s Concrete Actions: Turning Views into Strategies

BUIDL Fund: An Institutional Breakthrough in Tokenization

BlackRock’s 2023 launch of the BUIDL fund is its flagship product in the tokenization strategy, built on Ethereum. This choice itself speaks volumes—cryptocurrency communities generally see this as an indication that Ethereum is the “general-purpose blockchain” in Fink’s vision, serving as the infrastructure for institutional-grade real-world asset (RWA) tokenization.

Ongoing Capital Deployment

According to the latest data, signals from BlackRock and other institutions’ deployments are clear:

It’s worth noting that the outflow from ETHA does not imply institutions are bearish on Ethereum. It’s more likely a rebalancing action—reallocating positions amid market volatility rather than exiting their holdings.

Market Status: From Concept to Reality in Tokenization

Ethereum’s Market Performance

Current market data for Ethereum shows a complex attitude:

• Current Price: $2,983.33
• Market Cap Rank: 2nd, accounting for 11.86%
• Recent Performance: Down 10.93% over 7 days, but up 0.94% in 24 hours
• 24-hour Trading Volume: $3.403 billion

Short-term price fluctuations mask deeper changes. According to related news, by 2026, RWA tokenization has become a key topic among major institutions. BlackRock’s BUIDL, Goldman Sachs exploring bond tokenization, and JPMorgan launching its settlement coin—all indicate that tokenization has truly moved from conceptual to implementation stages.

Real Signals of Institutional Deployment

Last week, US spot Bitcoin ETF net inflows reached $1.42 billion, the highest since October. This shows that despite short-term market volatility, institutional capital’s long-term demand for crypto assets remains strong.

Deeper Significance: The Identity Shift of Crypto Assets

From Speculation to Application

Larry Fink’s statements and BlackRock’s actions point to an important transformation: crypto assets are evolving from purely speculative tools into financial infrastructure. Tokenization is no longer just an ideal for tech enthusiasts but a practical solution to traditional financial problems.

Ethereum’s Strategic Position

Choosing Ethereum for BlackRock’s tokenization fund signifies its elevated status in the eyes of institutions. From “high-risk speculative asset” to “institutional-grade infrastructure,” this identity shift requires years of development and validation. Now, this transition is underway.

Future Outlook: Accelerating the Era of Tokenization

Based on current signals, several directions deserve attention:

• Regulatory Frameworks: The introduction of rules like the EU’s MiCA provides a legal foundation for tokenization, with other regions expected to follow
• Expansion of Use Cases: Tokenization of more asset classes—bonds, stocks, real estate, insurance—may accelerate
• Deepening Institutional Participation: More traditional financial institutions are expected to launch tokenization products, creating a virtuous cycle
• Ethereum Ecosystem Benefits: As the primary infrastructure for tokenization, Ethereum’s network value may further increase

This is not an overnight change but a long-term reconstruction of the financial system.

Summary

Larry Fink’s latest remarks are not abrupt opinions but a strategic declaration of BlackRock’s long-term deployment. When the CEO of the world’s largest asset manager publicly states that tokenization is inevitable, it’s no longer a question of “if” but “when” it will fully arrive. BlackRock’s BUIDL fund, ongoing capital investments, and choice of Ethereum provide their answer. Short-term market fluctuations cannot alter this overarching trend—tokenization is becoming the underlying logic of 21st-century finance, with Ethereum poised to be a key infrastructure in this transformation. For investors, understanding the depth and breadth of this shift is more important than chasing short-term price movements.