BlackRock CEO supports tokenization! Black Swan capitalist: XRP's position as a settlement layer for cross-border transactions is established.

Versan Aljarrah, co-founder of Black Swan Capitalists, shared a video of Larry Fink, CEO of BlackRock, discussing the rapid development of digital finance. Fink's remarks confirm the long-held view of XRP supporters that the global market is about to change, with every Central Bank currency becoming digitized, every ETF and asset being tokenized, and the need for a cross-border settlement layer, with XRP as the foundation of the new financial system.

BlackRock CEO's Strategic Assessment of Tokenization and Digital Currencies

(Source: X)

In the video, Fink raised some significant issues that he believes central banks and the financial industry are facing. He asked, “What role do tokenization and digitization play? How quickly should they consider the digitization of their national currency?” This question itself shows that BlackRock, as the world's largest asset management company managing over $10 trillion in assets, has regarded tokenization and digital currency as an irreversible trend, rather than merely an experimental concept.

He then explored how the transition to digital currencies might impact the US dollar, the banking sector, and major payment companies like Mastercard and Visa. Fink stated that while great attention has been given to artificial intelligence, “we have not spent enough time discussing how to quickly achieve the tokenization of all financial assets.” This statement suggests that, in Fink's view, the importance of tokenization may be on par with or even exceed the currently popular AI topic.

He also added that this shift will allow investors to transfer exchange-traded funds (ETFs) and other assets through digital wallets, and referred to this process as “rapidly occurring on a global scale.” This clear judgment on the time frame is extremely rare, suggesting that BlackRock may have already formulated a specific tokenization roadmap internally. When the world's largest asset management company indicates that a trend will “rapidly occur,” it often means that the company is actively driving it rather than passively observing.

Fink believes that most countries are not prepared to embrace this transformation. He stated that these countries “underestimate how technology is changing” the financial system, and compared the pace of innovation in the financial sector to the accelerated development in the field of artificial intelligence. This criticism indicates that BlackRock believes the current pace of regulation and infrastructure development is far behind the actual needs of technological advancement, and if the pace is not quickened, they may fall behind in the global competition for financial digitization.

The Source of Excitement for XRP Supporters and Logical Deduction

Fink's recognition of the upcoming wave of tokenization aligns with the long-held views of many members of the XRP community. They believe that the infrastructure being developed by Ripple will make XRP a key player in the field of cross-border payments and settlements. XRP aims to enable instant, low-cost transfers between different currencies and jurisdictions, thereby addressing one of the main challenges described by Fink, which is the need for new financial channels in a digitized world.

Aljarrah wrote in his post: “Every Central Bank currency will be digitized, every ETF and asset will be tokenized, and they all need a cross-border settlement layer,” calling XRP the foundation of the new financial system. This logical deduction is the core argument of XRP supporters. When central banks launch CBDC (Central Bank Digital Currency), and when all assets are tokenized, a high-efficiency, low-cost, instant settlement layer is needed for these digitized values to flow globally. XRP supporters believe this is precisely the original intention and core advantage of XRP.

XRP supporters believe that Fink's comments validate years of discussions surrounding digital transformation in the financial sector. Aljarrah and others interpret his statements as evidence that the world's largest asset management firm recognizes the inevitability of tokenization and digital currency. While this interpretation carries a certain degree of subjectivity, it is not entirely without merit. When institutions of BlackRock's caliber begin to publicly discuss the necessity of tokenization, it indeed suggests that this trend has moved from the conceptual stage to the implementation readiness stage.

Supporters believe that with the advancement of the tokenization process and the exploration of Central Bank Digital Currencies (CBDC) by various countries, an efficient settlement layer will become crucial. They assert that the speed, scalability, and well-established regulatory framework of XRP make it one of the few digital assets available for institutional use. This judgment is based on several facts: XRP transaction confirmation time is about 3 to 5 seconds, far faster than Bitcoin's 10 minutes; transaction fees are usually less than $0.01, suitable for large-scale high-frequency settlements; and Ripple's victory in the lawsuit against the SEC provides regulatory clarity.

XRP's Four Major Advantages as a Cross-Border Settlement Layer:

Instant Confirmation: Transaction confirmation completed in 3-5 seconds, far exceeding the 3-5 days of the traditional SWIFT system.

Ultra-low cost: Transaction fees are less than 0.01 USD, making large-scale settlement economically feasible.

Clear Regulation: The victory over the SEC lawsuit provides legal certainty, allowing institutions to adopt with confidence.

Technology Maturity: Running for over 10 years without major security incidents, the reliability of the technology has been verified.

BlackRock's tokenization strategy and its potential relation to XRP

It is worth noting that BlackRock has taken concrete actions in the field of tokenization. The company launched the BUIDL tokenized money market fund, which is an early attempt at tokenizing traditional assets. In addition, BlackRock is also the issuer of multiple cryptocurrency spot ETFs, including iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust (ETHA). These actions demonstrate that Fink's statements on tokenization are not mere rhetoric, but are based on the company's strategic layout.

Although Fink did not directly mention XRP in the video, XRP supporters saw an indirect endorsement from his tokenization discourse. The logic chain is: If BlackRock is serious about promoting tokenization → it needs efficient cross-border settlement infrastructure → XRP is one of the few existing solutions that meet the requirements → BlackRock may consider adopting or investing in XRP-related technology. Although this inference has several leaps, it is not entirely unreasonable.

More direct evidence is that BlackRock has not yet launched an XRP spot ETF. Considering that BlackRock has already launched Bitcoin and Ethereum ETFs, it would be a logical next step if they truly believe in the long-term value of XRP. Market rumors suggest that BlackRock is evaluating the possibility of an iShares XRP Trust, and if this rumor turns out to be true, it will be the strongest evidence for XRP supporters.

From a strategic perspective, for BlackRock to participate in the global financial tokenization wave, it needs to establish partnerships with various tokenization infrastructures. Ripple, as a leading company in the cross-border payment sector, has formed partnerships with hundreds of financial institutions worldwide. A potential collaboration between BlackRock and Ripple could bring immense value to both parties: BlackRock gains an efficient settlement infrastructure, while Ripple receives endorsement and access to the client network of the world's largest asset management company.

Challenges and Adoption Path of XRP

Despite the excitement among XRP supporters regarding Fink's statements, XRP still faces many challenges to truly become a global settlement layer for cross-border transactions. First, there is the complexity of technological integration. The core systems of traditional financial institutions often run for decades, and integrating them with new blockchain infrastructure requires a significant amount of technological renovation and testing. Second, there are difficulties in regulatory coordination. Cross-border settlement involves regulatory agencies from multiple countries, each with different attitudes and rules regarding digital assets, making it highly challenging to establish a unified regulatory framework.

The third is the presence of competitors. XRP is not the only cross-border settlement solution; Stellar (XLM) offers similar functionalities, and traditional financial institutions are also developing their own CBDCs and cross-border payment systems. SWIFT is also upgrading its system to address digital challenges. XRP needs to prove its unique value in this highly competitive market.

However, XRP also has its unique advantages. The collaborative network that Ripple has established with hundreds of financial institutions worldwide is its greatest moat, and these existing relationships can accelerate the adoption of XRP. The RLUSD stablecoin launched by Ripple provides another tool for its integration with traditional finance. Ripple's CEO Brad Garlinghouse's good relationship with the Trump administration also provides policy support for its development in the U.S. market.

From a time frame perspective, if what Fink said about tokenization “happening rapidly on a global scale” is accurate, then XRP, as an early mover, will gain a first-mover advantage. The key lies in whether Ripple can advance its collaborations with financial institutions from the testing phase to large-scale commercial applications in the next 1 to 2 years. If this transition can be achieved, the value of XRP will gain strong fundamental support.

For investors, the statement from the CEO of BlackRock provides an important market signal: tokenization and digital currencies are no longer a distant future, but an imminent reality. Whether XRP can become the foundation of this new financial system still needs time to verify. But at least, the recognition from the world's largest asset management company adds significant credibility support to the long-term narrative of XRP.