BlackRock CEO's full letter to investors: Bitcoin is eroding the dollar's reserve status, tokenization will lead the capital revolution.

The CEO of BlackRock, the world's largest asset manager, predicts asset tokenization will be the next financial revolution and warns that U.S. debt could allow digital assets such as bitcoin to replace the dollar. This article is from Golden Finance, organized and compiled by the moving area. (Synopsis: BlackRock CEO: If the U.S. debt deficit cannot solve "Bitcoin will replace the dollar", tokenization is democratization) (Background supplement: Alpha Nuggets is known as BlackRock on the chain, how the "Reserve protocol" leads the trend of the RWA track) BlackRock CEO Larry Fink recently released the full text of the 2025 annual letter to investors, Larry Fink starts with the democratization of investment, and then talks about unlocking private markets, and tokenization. In his investor letter, Larry Fink also addressed Bitcoin's threat to the dollar's status as a reserve currency, DeFi, and tokenization. He said that if the United States cannot control the debt and the deficit continues to inflate, the United States may cede the dollar's reserve currency status to BTC. Decentralized finance (DeFi) is an extraordinary innovation that makes the market faster, cheaper, and more transparent. And tokenization is democratization, every stock, every bond, every fund – every asset – can be tokenized. If they do tokenize, the capital market investment landscape will be revolutionized. Most importantly, tokenization makes investing more democratic. Tokenization allows for partial ownership. This means that assets can be divided into infinitesimally small parts. This lowers one of the barriers to investing in valuable, previously unobtainable assets such as private real estate and private equity. To democratize investment and unlock private markets, BlackRock is moving into infrastructure and private credit. In infrastructure, BlackRock acquired Global Infrastructure Partner (GIP) in 2024, GIP owns some of the world's most important infrastructure assets – London Gatwick Airport, major energy pipelines and more than 40 global data centers. Also notable is GIP's acquisition of the Panama Canal under the Yangtze River Hutchison in partnership with Mediterranean shipping company (MSC) and terminal investment company (TiL). In private credit, BlackRock acquired Preqin, the world's leading private market data firm, and HPS Investment Partners, a top private credit manager, in 2024. I. The Flywheel of Prosperity Democratizing Investment: Bringing Prosperity to More Places, More People Almost every customer, every leader, and almost everyone I spoke to said they were more worried about the economy than they had recently. I understand why. But we've been through moments like this before. And, in the long run, we will always find a solution. Humans are intelligent and adaptable creatures, and we build systems that reflect our own image—systems that solve the chaos around us, make sense of it, and produce unexpectedly good results. Computers process complex data (and now languages) for us. Cities enable millions of people to coexist peacefully, and most of them are productive. But of all the systems we have created, the one that is the strongest and best suited to our moments began more than 400 years ago. This is a system we invented specifically to overcome contradictions such as scarcity in abundance and anxiety in prosperity. We call this system the capital market. Of all the systems we've built, the most powerful (and especially suited to moments like ours) began more than 400 years ago...... We call this system the capital market. In 1602, the world's first stock exchange opened in Amsterdam, and investing became a more democratic undertaking. Before that, investment was mainly the preserve of wealthy businessmen. In fact, about 90% of the original 1,143 investors on the Amsterdam exchange were wealthy. But the rest of the investors are ordinary people. They consisted of 53 craftsmen, 8 shopkeepers, 6 silk weavers, 4 soap makers – and at least two maids, each with an investment of 50 guilders, about enough to rent a humble cottage for a year. Even if capital markets crossed the Channel into Britain, with its strict class system, the London Stock Exchange was not built in a palace. Instead, it started at Jonathan's Coffee House in Change Alley. Bishops and bookkeepers invested with farmers who had arrived directly from the livestock market, their boots still stained with mud. Some people come here to speculate, but many come here to invest in new businesses – including one particularly promising one: the Bank of England. For the first time, ordinary people didn't just look at the economic growth around them. They own a portion of that growth – a real, tradable share. Over four centuries, our market has grown from a coffee shop in an alley to today. But fundamentally, markets still work the same way — like a flywheel of prosperity: people invest their savings, the market directs that money to companies and industries, and any success goes back to investors — helping them afford retirement, college, and housing. The flywheel is spinning all the time. Over the course of our lifetimes, market participation has exploded. In the first half of the 20th century, Americans' stock ownership rose from 1% to 4%. But since I came to Wall Street for my first job in 1976 — with long hair, turquoise jewelry, the ugliest brown suit in the world — investing has become increasingly fashionable (and luckily, me too). By 1989, less than one-third of U.S. households were investing in the market; Today, that number is about 60 percent. These investors benefit from the greatest period of wealth creation in human history. Over the past 40 years, (GDP) of global GDP has grown more than in the previous two millennia combined. This extraordinary growth – in part due to historically low interest rates, it must be noted – has delivered remarkable long-term returns. But of course, not everyone shares this wealth. Figure 1.1 Historical performance is not necessarily indicative of future investment performance. This extraordinary era of market expansion coincided with, and was largely driven by, globalization. While a flatter world has lifted 1 billion people out of poverty on $1 a day, it has also prevented millions in rich countries from striving for a better life. Today, many countries have a double inversion economy: one country is accumulating wealth, while the other is in difficulty. This divide has reshaped our politics, our policies, and even our perception of possibility. Protectionism has returned strongly. The self-evident assumption is that capitalism won't work and it's time to try something new. But there's another view: capitalism does work – just for too few people. Markets, like everything humans build, are not perfect. They reflect us – unfinished, sometimes flawed, but always something that can be improved. The solution is not to abandon the market, but to expand it, completing the democratization of the market that began 400 years ago, so that more people can have the meaningful benefits of the growth that is happening around them. In the following content, I will offer some ideas on how to further democratize investment in two ways: 1. Help existing investors access parts of their previously restricted areas...