Why did BlackRock warn about FOMO in tokenization?

Because excessive enthusiasm may lead investors to neglect due diligence and invest in unvetted assets, increasing risks.

Does BlackRock itself use tokenization?

Yes, BlackRock launched a tokenized US Treasury fund, but it emphasizes the importance of careful evaluation.

What assets can be tokenized?

Almost any real-world asset can be tokenized, including real estate, financial instruments, music, and art.

BlackRock Warns of Rising FOMO in Tokenization on Wall Street

BlackRock has warned of rising FOMO (fear of missing out) among asset managers on Wall Street, as nearly every firm wants to create digital tokens of popular funds. Tokenization uses blockchain to represent real-world assets like property and financial instruments.

June 24, 2026

2 min read

Source: TheStreet

BlackRock (BLK), the world's largest asset manager, has issued a warning about the growing fear of missing out (FOMO) on Wall Street, where nearly every asset manager is rushing to produce digital tokens of popular funds.

What is Tokenization?

Tokenization is the process of using blockchain technology to represent real-world assets (RWAs) such as real estate, financial instruments, music, and art as digital tokens. These tokens allow for fractional ownership, increasing liquidity and lowering barriers to entry.

BlackRock's Warning

Despite the promising opportunities, BlackRock warns that excessive enthusiasm could lead to risks. The firm cautions that FOMO may drive investors to neglect due diligence and invest in unvetted assets.

Context

BlackRock itself has been a pioneer in this space, launching a tokenized US Treasury fund. However, it emphasizes the importance of thorough evaluation and strong governance.

What This Means for Investors

Investors should exercise caution and avoid getting swept up in the hype. Tokenization is a promising technology but remains in its early stages, carrying regulatory and operational risks.

Frequently Asked Questions

Tokenization is the process of converting real-world assets like real estate and stocks into digital tokens on a blockchain, enabling fractional ownership and increased liquidity.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.