BlackRock CEO Touts the Next Big Thing in Crypto

BlackRock CEO Larry Fink’s annual letter to investors suggests that tokenization could be the next big thing in the cryptocurrency space.

According to the head of the $10 trillion asset management giant, Bitcoin has only been in the headlines as a distraction, with the media’s “obsession” overshadowing other interesting developments happening in the cryptocurrency space.

Fink drew attention to the huge strides Crypto payments have made in emerging markets like Brazil and parts of Africa. He contrasts them with the slow pace of innovation in developed markets, such as the US, where payment costs remain high.

The BlackRock chief sees an opportunity in the Crypto asset space, where the underlying technology can improve the efficiency of capital markets, shorten value chains, and increase accessibility for investors.

In his view, the breakdown of the asset class into tokens presents a very encouraging prospect.

He confirmed that BlackRock is actively delving into the Crypto asset space, with a focus on permissioned blockchains and converting stocks and bonds into tokens.

However, Fink acknowledged that while the industry is maturing, regulation remains unclear. He assured investors that they would apply the same standards and controls to cryptocurrencies that they do across their business.

As U.Today reported, Fink predicted during his recent summit appearance that most cryptocurrency companies would fail. The BlackRock boss also revealed that BlackRock put $24 million into the defunct FTX exchange, but was then forced to reduce that amount to zero.

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