BlackRock CEO Larry Fink has suggested that the next big trend in the crypto industry could be tokenization
BlackRock CEO Larry Fink annual letter to investors suggests that tokenization could be the next big trend in crypto.
CEO of $10 trillion asset management giant says Bitcoin grabbed headlines as mere distraction as media ‘obsession’ obscures other interesting cryptocurrency developments .
Fink draws attention to the dramatic advances in digital payments in emerging markets such as Brazil and parts of Africa. He contrasts them with the slow pace of innovation in developed markets like the United States, where the cost of payments remains high.
The BlackRock head sees an opportunity in the digital asset space where underlying technologies can improve the efficiency of capital markets, shorten value chains and increase accessibility for investors.
According to him, the fragmentation of asset classes into tokens presents a very encouraging prospect.
He confirmed that Blackrock is actively diving into the digital asset space with a focus on permissioned blockchains and the conversion of stocks and bonds into tokens.
However, Fink acknowledges that even though the industry is maturing, there is still no regulatory clarity. He assured investors that they will apply the same standards and controls to crypto that they apply to their entire business.
As reported by U.Today, Fink predicted that most cryptocurrency companies would fail during his recent high. The BlackRock boss also revealed that BlackRock had invested $24 million in the former FTX exchange, but was later forced to reduce that amount to zero.