Bitcoin Updates Today: Conventional Finance Faces Off with Tokenization—Who Will Evolve First to Prevent Worldwide Turmoil

BlackRock Inc. CEO Larry Fink has cautioned that global financial systems are not ready for the swift advancement of tokenization, a technological evolution he believes could surpass artificial intelligence in its impact. During his address at the Future Investment Initiative in Riyadh, Fink pointed out that the worldwide movement toward tokenizing financial assets is picking up speed and may upend established frameworks more rapidly than most governments or central banks expect, as highlighted in a

observed.

Fink's comments reflect a larger pattern of investors turning to alternatives to traditional currencies, driven by worries over inflation and mounting public debt. He described gold and cryptocurrencies as "assets of fear," chosen by those "concerned about their assets losing value" and uneasy about both financial and physical safety, according to a

. This perspective fits with the "debasement trade," where investors move away from government bonds and fiat money, opting for tangible assets like and gold to guard against inflation—a trend also noted by Bloomberg.

Concerns have grown as U.S. debt is forecasted to hit 143.4% of GDP by 2030. According to IMF figures, the U.S. will continue to run a budget deficit above 7% of GDP each year through 2030, the highest among developed nations, as detailed in a

. Fink pointed out that the U.S. still depends on overseas buyers to purchase 30%-35% of its Treasury offerings, a situation he described as the "most pressing issue today," as reported by . He cautioned that a rapid decline in demand for dollar-based assets could set off a chain reaction affecting global financial stability.

At the same time, the tokenization of real-world assets (RWAs) is gathering steam. Ondo Finance, which connects traditional finance with decentralized platforms, has recently broadened its tokenized U.S. equities services to the

Chain, allowing international investors to trade tokenized stocks and ETFs at any time, according to a . The platform now oversees $1.83 billion in tokenized holdings, with U.S. Treasuries making up 80.78% of its assets. This expansion mirrors a wider industry movement, as firms like Ondo partner with major organizations, including the Trump-supported (WLFI), to incorporate tokenized assets into treasury management.

Central banks are also reassessing their approaches. Fink noted that many are struggling to understand the consequences of tokenization and digitalization, especially as they weigh the introduction of central bank digital currencies (CBDCs) and their potential to update payment infrastructures. Data from Deutsche Bank shows that gold now accounts for 24% of central bank reserves as of Q2 2025, signaling a move toward traditional safe assets amid global tensions, as CoinMarketCap reported.

Bitcoin's recent price swings—surging to $126,000 before dropping below $110,000 after tariff threats from Trump—have intensified discussions about the role of crypto as a protective asset. Despite its volatility, BlackRock's iShares Bitcoin Trust, holding $93.9 billion in assets, demonstrates institutional faith in cryptocurrencies. Fink's changing view—from calling Bitcoin a "money laundering tool" in 2017 to becoming a "major believer" by 2025—illustrates the sector's evolution, as noted in industry reports.

With tokenization advancing rapidly, Fink called on regulators and policymakers to get ready for a world where digital assets reshape global finance. "We're not dedicating enough attention to how fast every financial asset will be tokenized," he warned, predicting significant consequences if countries fail to keep pace.