Larry Fink identified identity verification infrastructure as the primary obstacle preventing wider adoption of tokenized assets

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However, Fink noted that insufficient identity verification infrastructure for tokenized assets remains a bottleneck. Once the issue is resolved, he expects tokenized funds to become as familiar to investors as exchange-traded funds.

Fink also said that the main challenge with tokenized assets is the lack of proper identity checks. Once that is fixed, he thinks that the tokenised funds could become as familiar as ETFs. Other big companies like JP Morgan, State Street, and Franklin Templeton are also exploring blockchain for tokenized funds.