BlackRock Chairman Larry Fink sees assets tokenization as key to driving efficiency in capital markets

BlackRock Set to File Bitcoin ETF Application in Partnership with Coinbase

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  • In his recent shareholder letter, billionaire Larry Fink expressed an interest in monitoring the development of digital assets.
  • Fink expressed that the digital asset industry is developing and maturing but also highlighted its associated risks

Yesterday, BlackRock Chairman Larry Fink discussed the potential of asset tokenization in his annual letter. He noted that digital assets present opportunities to enhance efficiencies in capital markets, reduce value chains, and improve cost and access for investors. As part of its exploration into this space, BlackRock has been involved in cryptocurrency activities and tokenizing BlackRock money market fund shares for use in JP Morgan’s blockchain-based collateral management system. His comments reflect the shifting focus of the asset management industry from cryptocurrencies to tokenized assets, partially due to the FTX collapse and subsequent cryptocurrency fallout.

Several fund distribution companies have been involved in blockchain for years. However, last year saw a surge of interest from prominent asset managers such as Abrdn, Apollo Global, Hamilton Lane, and KKR, as well as fund administrator Apex. In addition, BlackRock is making strides in the crypto market by managing a money market fund with more than $30 billion in U.S. Treasury reserves for the USDC stablecoin and enabling clients to invest in cryptocurrencies via Coinbase. It also runs various crypto- and metaverse-focused ETFs.

Fink commented that developing markets such as India, Brazil, and Africa are already beginning to reap cost benefits from digital payments while many developed countries, including the U.S., are lagging in innovation and still experiencing relatively high payment costs.

“In particular, tokenizing asset classes offers the prospect of driving efficiencies in capital markets, shortening value chains, and improving cost and access for investors. At BlackRock, we continue to explore the digital assets ecosystem, especially areas most relevant to our clients, such as permissioned blockchains and tokenization of stocks and bonds.”

Larry Fink, BlackRock CEO

BlackRock CEO Larry Fink has expressed that the digital asset industry is developing and maturing but also highlighted its associated risks. He further concluded on the need for regulation in the crypto market and BlackRock’s commitment to maintaining its standards of operational excellence by applying the same controls to digital assets as it does across its business.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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