BlackRock CEO Larry Fink: Bitcoin May Challenge USD as Global Reserve Currency
BlackRock, the world’s largest asset management company, has recently announced in its 2025 letter to investors that Bitcoin is expected to challenge the US dollar’s status as the global reserve currency. Larry Fink praised the potential revolutionary changes that tokenization could bring to the operation of capital markets, stating that “tokenization is democratization.”
(Background: BlackRock: Bitcoin is not a risk asset; its positioning as digital gold will become increasingly clear.)
(Additional context: BlackRock CEO: Bitcoin is a hedge asset against global pessimism, with institutional investments accelerating towards $700,000.)
Bitcoin as a Disruptive Technological Innovation
In his letter, Larry Fink emphasized that Bitcoin, as a disruptive technological innovation, has the potential to challenge the dollar’s status as the global reserve currency if the US government fails to control its massive debt and fiscal deficit:
If the US debt is not controlled and the fiscal deficit continues to expand, the dollar could potentially be replaced by digital assets such as Bitcoin.
Beyond Speculative Asset Attributes
Throughout the letter, Larry Fink reiterated his views on Bitcoin, highlighting that it has now transcended its speculative asset attributes and is becoming a means of value storage, also regarded as a risk hedging tool. In recent years, institutional investors have been discussing Bitcoin as an insurance measure against currency depreciation and geopolitical conflicts.
To illustrate the development and adoption of Bitcoin, Fink mentioned BlackRock’s launch of a Bitcoin spot ETF last year, noting that the company’s Bitcoin ETF surpassed $50 billion in assets under management within its first year, ranking third in net asset inflows among all ETF products.
He also emphasized the strong demand from retail investors, with over half of the adoption of BlackRock’s Bitcoin ETF coming from retail investors, three-quarters of whom are emerging investors who had not previously invested in the company’s products.
Tokenization is Democratization
The title of Larry Fink’s letter is “Democratization of Investment,” in which he directly states, “Tokenization is democratization.” He emphasizes that the emergence of tokenization signifies a fundamental change in the rules of the capital market:
Tokenization means a fundamental shift in asset ownership; every stock, every bond, every fund—every asset can be tokenized. This will fundamentally change the way investments are made. Markets will no longer need to be closed; transactions that currently take days can be completed in seconds through tokenization, allowing billions of dollars previously rendered unusable due to delays to be rapidly reinvested into the market for faster growth.
Perhaps most importantly, tokenization will make investments more democratic, as assets can be divided into smaller units to enhance investment accessibility; tokenization also democratizes shareholder voting, with all data being transparent and traceable; furthermore, tokenization can democratize returns, circumventing bureaucracies and legal issues, enabling investors to achieve greater potential returns.
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