BlackRock CEO: Tokenization of financial assets will be the next step in future development
According to reports, Larry Fink, CEO of BlackRock, the world's largest asset management company, recently stated that "the tokenization of financial assets will be the next step in future development." He pointed out that every stock and bond in the future will have a unique identification code (similar to CUSIP), all transactions will be recorded on a unified ledger, and investors will also obtain exclusive identity recognition.
Fink said that tokenization can not only effectively prevent illegal activities but more importantly enable instant clearing, significantly reducing the settlement costs of stocks and bonds. In addition, tokenization could also bring about possibilities for personalized investment strategies and improve corporate governance efficiency by ensuring each shareholder can exercise their voting rights timely and accurately.
Tokenizing real-world assets such as real estate, commodities, wine or art means creating blockchain tokens representing ownership which makes it easier to trade these traditionally hard-to-sell assets.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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