Key Takeaways
BlackRock CEO Larry Fink says the US risks losing its reserve currency status to Bitcoin if it fails to curb debt and deficits.
Fink also emphasizes tokenization as a financial revolution, calling it the next step in democratizing investing.
BlackRock CEO Larry Fink issued a stark warning in his 2025 annual letter to investors, saying that the United States risks losing its global reserve currency status to Bitcoin.
“If the US doesn’t get its debt under control, if the deficits keep ballooning, America risks losing that position to digital assets like Bitcoin,” Fink wrote in his 2025 annual letter to investors.
His comments come as BlackRock’s own actions echo this conviction. Since launching its spot Bitcoin ETF, the asset manager has accumulated over 575,000 BTC, cementing its position as both the largest asset manager and the largest holder of Bitcoin in the ETF space.
Fink’s remarks and the firm’s Bitcoin strategy signal that BlackRock views Bitcoin as the dominant digital asset class poised to lead the financial future.
Although he emphasized his support for digital innovation, he warned that the same technology could erode America’s edge if investors begin viewing Bitcoin as a safer alternative to the dollar.
Recent developments have underscored the urgency of Fink’s warning. Earlier this month, Moody’s downgraded its outlook on US debt to negative, citing rising concerns over former President Donald Trump’s new wave of tariffs and unfunded tax cuts.
Meanwhile, the Bipartisan Policy Center has projected that the US could default on its obligations as early as July if Congress fails to intervene.
Fink’s warning on US debt came alongside an optimistic outlook on innovation. He described tokenization as one of the most transformative shifts in modern finance.
Arguing that converting real-world assets into blockchain-based tokens would revolutionize investing by enabling instant settlement, democratized access, and better yields.
“Every stock, every bond, every fund—every asset—can be tokenized,” he wrote. “If they are, it will revolutionize investing.”
The key challenge, he said, is identity verification, which remains a technical and regulatory bottleneck for tokenized markets.
Fink cited India’s Aadhaar system as a potential model for the digital financial infrastructure needed to scale such solutions globally.
Despite the anxiety voiced by clients and leaders worldwide, Fink expressed long-term optimism in capital markets, calling them one of the most powerful human systems ever created.
Yet even that system, he warned, may not be enough to preserve US dominance if Washington fails to get its fiscal house in order.