Managing an astounding $13.5 trillion, BlackRock is undergoing a profound strategic transformation, aggressively investing in private markets and championing tokenization as its next major growth engines, promising significant long-term shifts in global finance.
The financial world is witnessing a seismic shift at BlackRock, the globe’s largest asset manager. With assets under management (AUM) hitting a record $13.5 trillion in the third quarter of 2025, the firm is not resting on its laurels. Instead, under the visionary leadership of CEO Larry Fink, BlackRock is executing a bold “reinvention,” dubbed “BlackRock 3.0,” by aggressively expanding into private markets and embracing the nascent, yet revolutionary, concept of tokenization.
This strategic pivot signifies a move beyond the traditional fixed-income and exchange-traded fund (ETF) mainstays that defined its earlier successes. The firm’s leadership, particularly Fink and CFO Martin Small, are visibly excited about these new growth engines, despite their current proportion of the overall asset base.
BlackRock’s Deep Dive into Private Markets: The New Profit Frontier
At the heart of BlackRock 3.0 is a substantial investment in private markets. The firm has committed more than $27 billion to a series of strategic acquisitions designed to bolster its capabilities in this lucrative sector. These include:
- HPS: A private-credit giant, acquired for $12 billion in an all-equity deal, closing at the start of Q3 2025. This addition alone brought roughly $100 billion in private market assets.
- Global Infrastructure Partners (GIP): An infrastructure investor, whose deal closed on October 1 of last year. GIP notably raised the largest infrastructure fund ever this summer, exceeding $25 billion.
- Preqin: A leading private-markets data player, enhancing BlackRock‘s analytical prowess in the sector.
The impact of these acquisitions is already profound. Revenues generated from private market funds and tech subscriptions – including Preqin and BlackRock‘s established risk analytics platform Aladdin – have now outpaced those from fixed-income funds and ETFs for consecutive quarters. This is a remarkable turnaround, considering fixed-income and ETFs were once the firm’s core revenue drivers. Fees from private market funds surged by an astonishing 136% through the first three quarters of 2025 compared to the same period in 2024. Even without Preqin, tech services revenue alone saw a 12% year-over-year increase, as highlighted by Martin Small.
Larry Fink articulated this enthusiasm on a recent earnings call, stating, “I’ve never been more excited about the future of BlackRock.” This excitement stems from the inherent advantages of private markets: higher fees, stickier capital, and the potential for a significant influx of 401(k) money in the future. While BlackRock still manages over $3 trillion in fixed-income products and its iShares ETF line recorded more than $150 billion in net inflows in Q3 2025, reaching over $5 trillion in assets, the firm’s strategic focus is undeniably shifting to where institutional capital is flowing. Conversations with insurance clients by the HPS team underscore this institutional demand, emphasizing the “depth and breadth of BlackRock‘s global platform” as it continues to expand its offerings, as reported by Business Insider.
blackrock ceo larry fink says this is only the beginning as the tokenization of everything is underway .
money , property , and even personal identity will soon exist in digital form .
he calls it a major opportunity for blackrock , saying the plan is to move beyond traditional …pic.twitter.com/lf3uvrteo8
— (@) October 20, 2025
The Tokenization Tsunami: BlackRock’s Bet on Digital Assets
Alongside its private markets push, BlackRock is spearheading a massive move into tokenization, a concept Larry Fink enthusiastically declared the “next wave of opportunity” for finance in mid-October 2025. This marks a significant evolution from his previous skepticism towards digital assets. Fink now believes tokenization, leveraging blockchain technology, can fundamentally transform how traditional assets like stocks, bonds, and real estate are owned and transacted – making them quicker, more divisible, and ownership clearer.
The vision extends to integrating tokenized ETFs with long-term retirement products, potentially bridging the gap between traditional finance and a new generation of crypto investors. Currently, BlackRock manages approximately $104 billion in crypto-related assets, representing about 1% of its total AUM. A key test case for this strategy is the $2.8 billion BUIDL fund, BlackRock‘s largest tokenized cash market fund, which serves as a prototype for future blockchain-based investments.
Fink is actively urging regulators, including the U.S. Securities and Exchange Commission (SEC), to expedite approvals for tokenized versions of bonds and equities. He projects an astounding growth for the tokenization market, from roughly $2 trillion in 2025 to potentially over $13 trillion by 2030, a figure consistent with market intelligence firm projections.
This endorsement from an institutional titan like BlackRock has resonated deeply across financial and crypto communities. Supporters champion tokenization’s ability to offer increased liquidity, facilitate fractional ownership, and provide 24/7 market access. This could democratize access to assets previously exclusive, allowing smaller increments of property, bonds, or funds to be purchased. Faster settlement times and transparent ownership records are also anticipated benefits for global markets. However, regulatory frameworks remain a critical hurdle, with approval delays and compliance demands potentially slowing momentum.
From Skeptic to Champion: Larry Fink’s Crypto Evolution
Larry Fink‘s journey with digital assets is a fascinating testament to rapid industry evolution. In 2017, he famously labeled Bitcoin a “money laundering index.” Fast forward to today, and his perspective has fundamentally shifted. He now compares digital assets to gold, positioning them as a valuable tool for diversification within investment portfolios, albeit advising against making them a “large part” of one’s portfolio. This pragmatic shift parallels BlackRock‘s success with spot crypto ETFs and strategic partnerships that are injecting institutional credibility into blockchain-based products.
Strategic Imperatives for Investors
For investors navigating this evolving landscape, BlackRock‘s pivot offers several key insights:
- Access to Alternatives: The firm’s focus on private markets and the potential for 401(k) money to flow into these areas signals increasing accessibility to alternative assets that were once difficult for retail investors to reach.
- Technological Integration: BlackRock‘s commitment to tech services, including Aladdin and Preqin, combined with its tokenization initiatives, indicates a future where technology is inextricably linked to investment strategy and access.
- Diversification Rethink: Fink‘s updated stance on crypto suggests that even traditional portfolios may benefit from a diversified allocation to digital assets, treated similarly to precious metals.
- Long-Term Vision: This isn’t a short-term trend; it’s a structural evolution. Investors should consider the long-term implications of tokenization on market efficiency, liquidity, and asset ownership.
The transition from a passive-investing giant to a diversified powerhouse deeply entrenched in private markets and pioneering tokenization underscores BlackRock‘s adaptability and aggressive pursuit of future growth. As regulators adapt and infrastructure scales, BlackRock‘s strategic direction may not only solidify its dominance but also fundamentally reshape the architecture of global investment, lending, and payments, making the future of finance inherently digital.
