BlackRock CEO: Tokenization will forever change the financial industry, enabling freer movement of investments
Larry Fink, CEO of BlackRock, stated that there are numerous intermediaries in the financial services sector. There are lengthy settlement periods and cumbersome processes. If every asset could be digitized, allowing for a seamless transition from cash or stablecoins in digital wallets to stocks or bonds, it would significantly reduce friction costs and transaction costs.
Currently, there is $4.1 trillion in global digital wallets. If they want to invest in bonds, stocks, or engage in real estate transactions, they must transfer funds from digital wallets to traditional wallets, which involves various commissions and fees. The idea of tokenizing all assets (including eventual real estate) is to greatly reduce these friction costs, making investments easier and simpler. It will enable a more freely flowing investment process.
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