Securities tokenization is the next evolution of the financial market according to the CEO of BlackRock.
Larry Fink, the CEO of BlackRock, the world’s largest asset management firm, believes that the reason why FTX failed is because it created its own FTX Token (FTT), which was centralized and therefore incompatible with the “whole essence of what crypto is,” according to Larry Fink, the CEO of the $8 billion investment firm.
said that despite his belief that FTX’s own-created token sank, he believes that crypto and the blockchain technology that supports it will be revolutionary, and he said that despite his belief that FTX’s own-created token failed, he believes that the token and the blockchain technology behind it will be revolutionary.
Larry Fink, the CEO of BlackRock, the world’s largest asset management firm, believes that the reason why FTX failed is because it created its own FTX Token (FTT), which was centralized and therefore incompatible with the “whole essence of what crypto is,” according to Larry Fink, the CEO of the $8 billion investment firm.
said that despite his belief that FTX’s own-created token sank, he believes that crypto and the blockchain technology that supports it will be revolutionary, and he said that despite his belief that FTX’s own-created token failed, he believes that the token and the blockchain technology behind it will be revolutionary.
Centralized exchange tokens such as Binance Coin (BNB) and Cronos (CRO) account for over $57 billion of the total crypto market cap of $862 billion.
In the interview with Andrew Sorkin, Fink said that he was still skeptical of these tokens and believes that “most of these companies aren’t going to be around.
“I think tokenization of securities will be the next generation of markets, the next generation of securities,” according to the author.
“I believe the next generation of markets, the next generation of securities, will be tokenization of securities.“
He suggested that tokenization could change the investing environment by making instantaneous settlement possible on distributed ledgers that show every owner and seller of securities.
He explained that instantaneous settlement of bonds and stocks would bring down fees even more dramatically.
Fink refused to speculate on the allegations that venture capital firms had failed to do the proper due diligence on FTX, but admitted that they had a $24 million investment in the company.
“We can make all the judgement calls that it looked like there was a major consequence.
I am sure that they did due diligence, because they have had unbelievable returns over a long period of time.”
BlackRock has been a major investor in the crypto industry since 2020.
Earlier this month, the company’s most recent move was revealed, on Nov. 3, In which it announced that it would be managing Circle’s reserve fund, USD Coin (UDSC) issuer Circle (UDSC).
Until now.
On September 27, it announced the launch of an ETF that would give investors access to 35 blockchain-related companies.
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