BlackRock CEO Larry Fink calls for tokenized stocks and bonds

BlackRock CEO Larry Fink appeared on CNBC’s Squawk Box from the sidelines of the World Economic Forum in Davos, discussing topics such as blockchain, regulatory challenges, and the global economy.

Fink advocated for the Securities and Exchange Commission to approve the tokenization of bonds and stocks, suggesting it could streamline ownership and reduce costs by providing direct notifications to investors.

“If we can tokenize bonds and stocks… it will democratize investing in ways we can’t imagine,” he said.

Fink also addressed the complexity of proxy voting under SEC Chairman Gary Gensler’s tenure, describing it as “open warfare” for CEOs. He called for a review of the system to simplify corporate governance and reduce costs.

On Environmental, Social, and Governance policies, Fink responded to criticisms from activist shareholders and legal challenges. He emphasized the importance of staying authentic and client-focused, despite political pressures.

BlackRock’s recent success in raising $641 billion, primarily from U.S. clients, underscores this approach.

Bitcoin to $700,000?

Fink suggested earlier at Davos that Bitcoin’s price could surge to $700,000 if sovereign wealth funds allocated 2% to 5% of their portfolios to the cryptocurrency.

Speaking at the World Economic Forum, Fink described Bitcoin as a tool to address concerns over currency debasement and political instability.

“If you’re frightened about debasement or local political instability, you have an international instrument called Bitcoin to overcome those fears,” Fink said. “We could see $500K, $600K, $700K per Bitcoin.”

However, Fink clarified that he was not promoting Bitcoin, instead emphasizing its volatility. He pointed out that even during bull markets, Bitcoin has experienced significant price corrections.