Forget Bitcoin: BlackRock CEO Touts Next Big Thing in Crypto
BlackRock CEO Larry Fink’s annual letter to investors suggests that tokenization might be the next big trend in crypto.
According to the head of the $10 trillion asset management behemoth, Bitcoin has caught headlines as a mere distraction, with the media’s «obsession» obscuring other interesting developments happening in the cryptocurrency space.
Fink draws attention to the dramatic advances in digital payments taking place in emerging markets such as Brazil and parts of Africa. He contrasts them with the sluggish pace of innovation in developed markets like the US, where the cost of payments remains high.
The BlackRock head sees an opportunity in the digital assets space where underlying technologies can enhance the efficiency of capital markets, shorten value chains, and increase accessibility for investors.
In his view, the fragmentation of asset categories into tokens presents a highly encouraging prospect.
He has confirmed that Blackrock is actively delving into the realm of digital assets with an emphasis on permissioned blockchains and the conversion of stocks and bonds into tokens.
However, Fink acknowledges that while the industry is maturing, there is still no regulatory clarity. He has assured investors that they will apply the same standards and controls to crypto that they do across their business.
As reported by U.Today, Fink predicted that most cryptocurrency companies would fail during his recent appearance at a summit. The BlackRock boss also revealed that BlackRock put $24 million into the defunct FTX exchange, but it was then forced to mark that sum down to zero.