According to BlackRock CEO Larry Fink, asset tokenization is expected to significantly simplify the investment process, making investing via mobile phones as convenient as everyday payments.
In his annual letter, Fink pointed out that half of the global population already uses digital wallets. If these wallets also had investment capabilities, users would be able to easily allocate diversified asset portfolios for long-term investment. He believes tokenization can reconstruct financial infrastructure through blockchain technology, making asset issuance, trading, and acquisition more efficient.
Asset tokenization refers to converting traditional assets such as stocks, bonds, and real estate into on-chain digital tokens, thereby enhancing liquidity and enabling fractional investment. Fink has previously emphasized that this technology helps lower the barrier to investment and promotes broader participation.
Against the backdrop of traditional financial institutions accelerating their exploration of blockchain applications, regulators and legislative bodies are also actively studying the potential role of tokenization in market structure and trade execution.