Tokenization Of Financial Assets Seen As Future Step By BlackRock CEO

According to PANews, BlackRock CEO Larry Fink has expressed that the tokenization of financial assets represents the next step in the evolution of the financial industry. Fink highlighted that in the future, every stock and bond will possess a unique identification code, similar to a CUSIP, and all transactions will be recorded on a unified ledger. This advancement will also provide investors with exclusive identification. Fink emphasized that tokenization not only serves as an effective measure against illegal activities but also facilitates instant settlement, significantly reducing the costs associated with settling stocks and bonds. Furthermore, tokenization opens up possibilities for personalized investment strategies and enhances corporate governance efficiency, ensuring that every shareholder can exercise their voting rights promptly and accurately. The tokenization of real-world assets such as real estate, commodities, wine, or art involves creating blockchain tokens that represent ownership, thereby simplifying the trading of these traditionally illiquid assets.