Dear Mr. Fink,
Last week, I read your annual letter to investors, and I agree that every stock, bond, fund, and asset can be tokenized.
I’m as excited about tokenization as you are, and I think it can unlock huge efficiencies, decrease fees and friction, and increase accessibility globally. However, having worked in the blockchain sector for nearly a decade now, I’m aware of some of the technical limitations of the best-known blockchains and what the tokenization of everything will require under the hood.
In this letter, I’d like to respectfully draw your attention to some of these limitations and offer a solution.
Tokenization requires massive transaction throughput
Let’s begin with a look at two popular blockchains, Ethereum and Solana. Ethereum’s record number of daily transactions is 1.25 million transactions, and Solana’s is 72.8 million. These numbers look impressive until we consider that the Nasdaq handled an average of 48 million daily trades in March 2025.
When we add other stock indexes like the DJIA, DAX, NIKKEI, and FTSE, neither of these blockchains comes close to handling the volume required to process their combined daily trades. Once we add FX, commodity, and real estate transactions, they are hopelessly ill-equipped to handle the volume.
Yet, even these monster markets are just touching the surface of what tokenization could become at scale. Truthfully, non-financial assets ranging from car titles to warehouse inventory could be tokenized, creating an interoperable global system the likes of which we can scarcely imagine. We need to think even bigger—when this plays out, encompassing the financial system, supply chains, and more, we’ll need a blockchain that scales unboundedly, and fees will have to be so low as to be negligible.
Layer two solutions are not the answer
Due to its account-based model, Ethereum cannot scale on the base layer. Solana is a different story, but it has repeatedly buckled under pressure, and even the $TRUMP memecoins caused it to fail.
Ethereum’s proposed solution is a complex network of layer two solutions using Optimistic and ZK-rollups as well as countless other ideas. Solutions like Polygon, xDai, and others propose taking transactions off the blockchain and settling them on it in batches or creating permissioned walled gardens that operate as private blockchains linked to the base layer.
These solutions are deeply flawed: they complicate the user experience, introduce security vulnerabilities like bridge hacks, do away with true transparency, and siphon revenue away from Ethereum nodes. Some of Ethereum’s biggest advocates are now calling on these solutions to pay Ethereum nodes more, increasing fees and creating misaligned incentives on the network.
This is happening because Ethereum has positioned itself as the future of blockchain, but in practice, its architecture represents a transitional phase—not the destination. Thankfully, there’s a simple solution that can solve all of these problems and deliver on the vision of tokenization at scale.
The original Bitcoin protocol—BSV
Like most blockchains, BSV has had its share of ups and downs and still has its critics. It has also seen its fair share of drama over the years like every blockchain ecosystem in the market. However, when it comes to delivering on the technical side, its critics quickly fall silent.
In a nutshell, BSV is an implementation of Satoshi Nakamoto’s original Bitcoin protocol, or as close as we can get. Like Satoshi, BSVers believe that Bitcoin has no scaling ceiling, and we rejected the choices made by small block advocates who promote Bitcoin as digital gold. We maintain that Bitcoin is a peer-to-peer cash system capable of everything from tiny payments to timestamping immutable records and even powering peer-to-peer communication applications.
Over the last few years, BSV’s best technical minds have been hard at work. They’ve restored the original protocol and scaled it to one million transactions per second via Teranode. To put that into context, BSV could process all of Visa’s (NASDAQ: V) annual transactions in just over 59 hours, and the fees would remain steady at fractions of a cent.
Better yet, BSV doesn’t rely on layer two solutions, sidechains, or anything else. All transactions happen on the base layer and leave time-stamped, immutable records, meaning all transactions can be traced and audited. The blocks are bigger, meaning there may be fewer nodes, but that means the network is sustainable as miners can rely on increasing volumes of fee revenue as transactions pick up pace.
BSV was also designed to be fully compliant with financial laws and regulations. The Network Access Rules (NAR) mean rogue operators can be kicked off the network and even prosecuted for behaving maliciously.
While incidents like North Korea’s Lazarus Group stealing billions from Bybit spook people and put them off blockchain technology, BSV nodes would simply coordinate, freeze the stolen tokens, and reassign them to their rightful owner after it was proven in court. Yes, Digital Asset Recovery is possible on BSV! Essentially, stolen gold turns to lead and turns back to gold when returned to its rightful owner.
BSV is the blockchain we need for tokenization at scale
In summary, BSV is the solution to all of the problems inhibiting tokenization: it does away with the security problems introduced by using multiple blockchains and bridges between them, and it solves network sustainability problems by making sure network nodes have ever-increasing revenue as transaction volumes pick up, and it scales unboundedly; even Teranode is just the first step, and there’s no limit to how big BSV blocks can get other than the limitations of hardware itself.
Mr. Fink, I agree that a tokenized financial system would be better in all of the ways you have identified; your vision is spot on. However, the blockchain this new system is built on has to scale, and only one can do the job today. There’s little point in building a tokenized financial system of dozens of different blockchains. Like the early internet, all networks will fold, and the most secure and scalable will win.
Of course, I’m just another guy promoting his ideas about his favorite blockchain, and you should be skeptical. However, there’s no way around it: it’s either a patchwork quilt of broken blockchains with bridges between them or one scalable solution that everything operates on. If BlackRock is serious about leading the tokenization revolution, your team should meet with BSV’s technical leaders and evaluate the protocol firsthand. First, they can test the network themselves by transacting on it and building test apps with no permission required!
Watch: Teranode is the digital backbone of Bitcoin
title=”YouTube video player” frameborder=”0″ allow=”accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share” referrerpolicy=”strict-origin-when-cross-origin” allowfullscreen=””>
