In his annual letter to investors, Larry Fink, CEO of BlackRock, returned to the opportunities offered by technologies derived from cryptocurrencies. He also believes that the United States and other developed countries are lagging behind on this subject.
BlackRock’s vision on cryptocurrencies
In his annual letter to investors published this weekend, Larry Fink, CEO of BlackRock, returned to many topics, including cryptocurrencies. Interestingly, however, the person concerned talks about blockchain, tokenization or even digital assets, but never use the word “cryptocurrency”.
In this letter, he notes a contrast at the global levelin the way digital assets are considered:
“In many emerging markets […], we are seeing dramatic progress in digital payments, reducing costs and advancing financial inclusion. In contrast, many developed markets, including the United States, lag behind in innovation, leaving the cost of payments much higher. »
Like many giants in traditional finance, Larry Fink believes BlackRock has opportunities in areas such as tokenization of stocks and bonds, as well as in permissioned blockchains. Unlike public blockchains, the latter are used by very specific actors within a defined framework, generally between different institutions as JP Morgan does with Onyx for example.
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A company already familiar with cryptocurrencies
BlackRock has already become involved in the cryptocurrency ecosystem in various ways. Last year, the company notably participated in a $400 million funding round from Circle. Moreover, the asset manager is precisely one of the partners of Circles in USDC stablecoin reserve management.
On the other hand, BlackRock launched a private Bitcoin (BTC) fund last summer, shortly after building relationships with Coinbase to expand the opportunities for exposure to cryptocurrencies within its Aladdin investment solution.
As for less successful partnerships, the company had participated in investments in FTX to the tune of $24 million.
More generally, BlackRock remains to this day the largest asset manager in the world. In 2022 alone, the company recorded more than $400 billion in new deposits from its customers, despite a difficult market environment. In addition, the group’s stock has been the best performer in the S&P 500 since its IPO, with a return of 7,700% since 1999.
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