BlackRock has been active in crypto since 2020 and has already developed numerous products and investments in the sector. The CEO has spoken out about the FTX case and the future of blockchain.
No to native tokens from crypto exchanges, yes to tokenization
The reason for the bankruptcy of the crypto exchange, FTX, is that it has made its own sign, FTX Token (FTT). So says Larry Fink, CEO of BlackRock, the world’s largest asset manager. It was on November 30, during the Dealbook Summit, a conference hosted by the New York Times. According to him, FTT was centralized and therefore contrary to the basics of what crypto is. A valid observation for tokens from centralized exchanges such as BNB, he said, before emphasizing that he remains convinced that without FTT, FTX would not have sunk.
In this regard, Fink spoke about his skepticism towards the platforms’ native tokens. Among other things, he criticized the management of the crypto exchange. He thus joins many who argue that there was risky management and reckless risk-taking at the stock market level. “At this point we can say that there appears to have been misconduct in the management of FTX. »he said.
However, BlackRock’s boss sees the tokenization of securities as the next step in the evolution of the financial market.
“Considering that exchange-traded funds are the origin of the surge in crypto investment, I think tokenization will be the origin of the next (…) It would change the investment ecosystem because instead of banks, instant settlement would be possible on open source ledgers, showing every owner and seller of securities (…) Think of instant settlement of bonds and stocks, without intermediaries. We’re going to cut rates dramatically.”he declared.
BlackRock manages approximately $8 trillion in assets. He is also involved in a large number of projects in the crypto universe. Separately, he revealed that he invested $24 million in FTX. An investment that has already been written off.
Get an overview of news in the world of cryptocurrencies by subscribing to our new service fromdaily and weekly so you don’t miss any of the essential Cointribune!
Far from dampening my enthusiasm, a failed investment in a cryptocurrency in 2017 only added to my enthusiasm. I therefore decided to study and understand the blockchain and its many applications and to pass on information about this ecosystem with my pen.