What is the future of Cryptocurrency
“I’m a big believer – It is an Assett Class that protects you”
Larry Fink – CEO Blackrock – Largest Assett Management Company Globally
Larry Fink CEO Blackrock on the Tokenisation of Everything
BlackRock CEO Larry Fink joins ‘Squawk Box’ to discuss the SEC’s approval of bitcoin ETFs, the impact on BlackRock, whether he’s a believer in bitcoin and crypto at large, and more.
Larry Fink, CEO of BlackRock, has expressed his views on the potential of tokenization and its role in the future of markets.
Tokenization, according to Fink, is the next generation for markets, and it involves using blockchain technology or digital tokens to represent real-world items[1][2].
He sees it as a solution to issues such as money laundering, identity theft, and corruption, as it can help eliminate such problems by providing unprecedented transparency, equal access rights, and little need for custodians, central clearing houses, or escrow services[2].
Fink’s perspective on tokenization is not ideological but rather based on the potential benefits it can bring to financial markets. He sees tokens as a new kind of financial market infrastructure that can reduce frictional costs and make financial intermediation more efficient[2].
BlackRock, under Fink’s leadership, is already embracing tokenization. The company has filed for a spot ether ETF with the Nasdaq exchange, and it was among the 11 bitcoin ETF issuers that received regulatory approval in the US[1]. BlackRock’s iShares Bitcoin Trust debuted on the same day that 11 spot bitcoin ETFs were approved by the Securities and Exchange Commission (SEC), accounting for about $1 billion of the total $4.6 billion in trading volume that the ETFs saw that day[1].
Fink also sees value in an ether ETF, which he believes is a stepping stone towards tokenization. He sees cryptocurrencies, particularly Bitcoin, as an asset class that can provide protection against geopolitical risks, similar to gold[3].
In summary, Larry Fink of BlackRock sees tokenization as the next generation for markets, and he is actively positioning his company to take advantage of this technological revolution. He sees it as a solution to various issues in financial markets and a means to reduce frictional costs and make financial intermediation more efficient.
Citations:
[1] https://markets.businessinsider.com/news/etf/bitcoin-etf-ether-cryptocurrency-outlook-blackrock-larry-fink-investors-sec-2024-1
[2] https://www.forbes.com/sites/davidbirch/2023/03/01/larry-fink-says-tokens-are-the-next-generation-for-markets/?sh=1d4b04787bb1
[3] https://finance.yahoo.com/news/blackrock-larry-fink-sees-value-045017667.html
[4] https://www.cnbc.com/2024/01/12/blackrocks-larry-fink-says-bitcoin-etfs-are-just-the-first-step-in-the-technological-revolution-of-finance.html
[5] https://www.youtube.com/watch?v=D0ek2yv81Gk