Larry Fink's vision of the future of asset management: AI, tokenization, and Bitcoin strategies

BlackRock Chairman and CEO Larry Fink discussed how he built the current $12.5 trillion in assets under management, and his views on the future of the financial industry, in a conversation with Citi Group. Over his 50-year career, Larry Fink has witnessed technology fundamentally transforming finance.

BlackRock’s Innovation Starting from Risk Management Technology

The success of BlackRock stems from a simple philosophy at its founding. When Larry Fink launched the company in 1988 with just 8 employees, most of the investment capital was allocated to developing risk management tools. He invested $25,000 in a SunSpark workstation, fundamentally changing cash flow calculations for mortgage pools.

“The true game-changer on Wall Street was the personal computer,” Fink emphasizes. In 1983, many calculations in the financial industry were still done manually. However, with real-time data processing capabilities, the entire securitization process could be revolutionized. This realization became the cultural foundation of BlackRock.

In 1994, when GE’s subsidiary Kider-Peabody went bankrupt, BlackRock used its Aladdin system to manage the liquidation of bad assets. While Goldman Sachs was expected to be chosen, BlackRock’s risk analysis capabilities earned trust. Nine months later, the portfolio generated profits, and GE paid the highest consulting fee in the company’s history.

During the 2008 financial crisis, the U.S. government directly offered employment to BlackRock. From supporting risk assessments for JP Morgan Chase, collaborating with the Treasury Department, to rebuilding AIG, Larry Fink’s Aladdin system played a central role in overcoming the crisis.

AI and Tokenization Transforming the Investment Industry

Currently, the next major wave Larry Fink is watching is artificial intelligence and the tokenization of financial assets. Digital platforms like NewBank in Brazil and Trade Republic in Germany are disrupting traditional financial practices. BlackRock has also established an AI lab at Stanford University, focusing on developing optimization algorithms.

For BlackRock, which manages $12.5 trillion in assets, investing in technology is enormous. However, as AI democratizes, competitive advantages are likely to diminish. Fink states, “Large early-stage players will have an advantage,” but with the spread of second-generation AI, this advantage is expected to shake further over the next five years.

What’s particularly interesting is how AI is transforming big data analysis. The company’s systematic equity team has outperformed the market for 12 consecutive years. The thematic investment strategies have achieved returns exceeding 95% of fundamental asset management firms.

However, Fink warns, “All investors need to find information that the market does not fully understand. Conventional news no longer generates excess returns.” If active investing were truly effective, the rapid growth of ETFs wouldn’t have occurred. Many traditional asset management firms are facing declining market caps, partly due to insufficient technology investments.

Turning to Bitcoin: A Hedge in Uncertain Times

Fink’s changing view of Bitcoin reflects his flexibility as a leader. In 2017, he harshly criticized Bitcoin as “a currency for money laundering and theft.” However, deep reflections during the pandemic changed this perspective.

The turning point was a story about paying wages to female workers in Afghanistan. Under Taliban rule, access to bank accounts was restricted, and Bitcoin was the only means to sustain their livelihoods. Fink recognized the true value of blockchain technology.

“Bitcoin is not a currency but a hedge against an uncertain future,” Fink now defines Bitcoin. Investors worldwide hold Bitcoin due to concerns over national security and currency devaluation. Even China, despite banning Bitcoin, continues to see its citizens holding it.

Currently, Bitcoin’s price is $89.30K (January 2026), and Fink believes that the asset’s value will increase over the next 20–30 years. In an increasingly uncertain world, he argues that digital assets supported by blockchain technology should be part of a diversified portfolio, alongside traditional assets.

Global Influence and Belief in Long-Termism

Fink’s influence is not just from his company’s size. Since 2012, he has annually written letters to shareholders, repeatedly advocating “long-termism.” These letters are not manifestos but voices from a company that has become the world’s largest index provider since 2009, emphasizing its role as a major asset manager.

Since the 2008 financial crisis, central bank governors and finance ministers have sought Fink’s personal advice behind closed doors. This trust stems from his unique value proposition of combining technology and investment expertise. “The asset management industry is fundamentally results-oriented,” he states, explaining BlackRock’s position as the third-largest in Mexico and one of the largest foreign pension fund managers in Japan.

Fink’s biggest concern is U.S. economic growth. “If the U.S. economy cannot sustain a 3% growth rate, the fiscal deficit will overwhelm the country,” he warns. The deficit, which expanded from $8 trillion in 2000 to $36 trillion in 2025, can only be contained through strong economic growth.

Additional worries include that 20% of U.S. debt is held by foreign entities, and the potential decline of the dollar’s global role due to the rise of stablecoins and digital currencies. However, he also states, “As long as assets and liabilities are matched and leverage is reduced, systemic crises are unlikely,” emphasizing that proper risk management can address these issues.

Fink’s message is clear: “Only by fully committing to the process can you maintain authority and influence in the industry. This right is earned daily and should never be taken for granted.” Throughout his 50-year career, he has upheld this belief, leading BlackRock to the top of the industry.