Bitcoin News Today: Traditional Finance vs. Tokenization: The Race to Adapt Before Global Chaos Erupts

BlackRock Inc. CEO Larry Fink has issued a stark warning that global financial institutions are ill-equipped to handle the rapid rise of tokenization, a technological shift he described as potentially more transformative than artificial intelligence. Speaking at the Future Investment Initiative conference in Riyadh, Fink emphasized that tokenization of financial assets is accelerating globally and could disrupt traditional systems faster than many governments or central banks anticipate, as a Bloomberg report noted.

Fink's remarks underscored a broader trend of investors seeking alternatives to fiat currencies amid concerns over inflation and rising government debt. He characterized cryptocurrencies and gold as "assets of fear," assets acquired by investors who are "frightened of the debasement of their assets" and anxious about financial and physical security, according to a CryptoTimes article. This sentiment aligns with the so-called "debasement trade," where investors divest from government bonds and currencies to hedge against inflation using hard assets like Bitcoin and gold, a trend Bloomberg has also highlighted.

The U.S. debt burden, which is projected to reach 143.4% of GDP by 2030, has intensified these anxieties. IMF data highlights that the U.S. will maintain a budget deficit exceeding 7% of GDP annually until 2030, the highest among advanced economies, according to a CoinMarketCap analysis. Fink noted that the U.S. remains reliant on foreign buyers to absorb 30%-35% of its Treasury sales, a dynamic he called the "biggest issue today," as covered by Coinotag coverage. He warned that a sudden shift in demand from dollar-based assets could trigger a cascading effect on global financial stability.

Simultaneously, the tokenization of real-world assets (RWAs) is gaining momentum. Ondo Finance, a platform bridging traditional markets and decentralized finance, recently expanded its tokenized U.S. equities offering to BNB Chain, enabling non-U.S. investors to trade tokenized stocks and ETFs around the clock, a Yahoo Finance report said. The platform now manages $1.83 billion in tokenized assets, with U.S. Treasuries comprising 80.78% of its portfolio. This growth reflects a broader industry shift, as institutional players like Ondo collaborate with major entities, including Trump-backed World Liberty Financial (WLFI), to integrate tokenized assets into treasury reserves.

Central banks are also re-evaluating their strategies. Fink highlighted that many are grappling with the implications of tokenization and digitization, particularly as they consider central bank digital currencies (CBDCs) and their role in modernizing payment systems. Deutsche Bank data shows gold's share of central bank reserves reached 24% in Q2 2025, reflecting a strategic pivot toward traditional safe havens amid geopolitical tensions, as reported by CoinMarketCap.

Bitcoin's recent volatility—peaking at $126,000 before plunging below $110,000 following Trump's tariff threats—has further fueled debates about crypto's role as a hedge. Despite its risks, BlackRock's iShares Bitcoin Trust, with $93.9 billion in assets, underscores institutional confidence in the asset class. Fink's evolving stance—from dismissing Bitcoin as a "money laundering tool" in 2017 to calling it a "major believer" in 2025—reflects the maturation of the crypto market, a trajectory noted in industry coverage.

As tokenization accelerates, Fink urged policymakers to prepare for a future where digital assets redefine global finance. "We're not spending enough time talking about how quickly we're going to tokenize every financial asset," he said, predicting a "multiplier effect" if nations fail to adapt.