New York-headquartered financial giant BlackRock, which boasts a total of $10 trillion worth of assets under management, recently spearheaded a funding round for real-world asset tokenization firm Securitize.   

BlackRock's Joseph Chalom has also become part of Securitize's board of directors. 

Earlier this year, the Larry Fink-helmed firm joined forces with Securitize in order to launch its first tokenized fund powered by the Ethereum blockchain. 

As reported by U.Today, Fink recently opined that tokenization would be the next big thing for cryptocurrencies in his annual letter to investors. 

Tokenization, a new buzzword within the financial industry, refers to the process of converting real-world assets into fractionalized digital tokens with the help of blockchain. Such a technology is capable of enhancing the efficiency of capital markets while also increasing their accessibility. 

BlackRock, of course, made waves earlier this year with the launch of its record-shattering Bitcoin exchange-traded fund. Despite slowing inflows, the fund remains a monumental success.    

Robert Mitchnick, head of digital assets at BlackRock, recently acknowledged that there was little demand for Ethereum and other altcoins, which is why Bitcoin remains their key focus. 

That said, tokenization is evidently another promising avenue for BlackRock given its recent moves. BlackRock's Chalom recently told Fortune that the investment in Securitize represents yet "another step" in their digital asset strategy. 

BlackRock is far from being the only financial giant that is betting on tokenization. Last November, US banking behemoth JPMorgan launched its own tokenization platform. 

In April, credit rating agency Moody's said that the growth of tokenization hinges on the development of blockchain-powered secondary markets.