BlackRock CEO Larry Fink Still Sees Promise In the Underlying Tech Of Crypto

The chief executive officer of BlackRock (the biggest asset management company across the globe) is still a part of the crypto industry despite the debacle of FTX. He is of the view that the cause for FTX’s failure is that the crypto exchange developed its token entitled FTX Token (FTT). As per him, the respective token was centralized and thus was against the entirety of the basis of the crypto industry.

The CEO of BlackRock Holds Fast to the Crypto Industry for Tech amid FTX Debacle

The CEO and chairman of the investment firm (that has a worth of up to $8B), Larry Fink, commented while appearing at the Dealbook Summit of the New York Times that was conducted on the 30th of November this year. He stated that notwithstanding his assumption about the FTT being a cause of the collapse, he is confident that the blockchain and crypto technology underpinning it would turn out to be revolutionary.

BlackRock, considered to be the biggest asset manager that oversees up to $8T, had formerly invested nearly $24M in the now bankrupt crypto exchange FTX via a fund of funds. As noted by Fink, the company led by Sam Bankman-Fried may have deceived the investors. The BlackRock CEO mentioned that there is a need to wait and see the consequences of this. The valuation of FTX reached above $32B at this year’s beginning, according to Crunchbase.

Nonetheless, the entire platform rapidly crumbled formerly in November following a debilitating bank run of approximately $6B ignited by apprehensions around narrow liquidity as well as gross mismanagement. Currently, FTX is going through its bankruptcy proceedings. The exclusive figures highlight that the company owes around $3.1B to the fifty biggest creditors and that a million of its consumers have witnessed losses.

Sam Bankman-Fried, FTX’s former CEO, specified that he had no intentions to commit fraud. He expressed his surprise at the extremely big position of Alameda in FTT (the native token of his exchange). In the words of Fink, the reason behind the collapse of FTX was that the exchange issued the native crypto token without adequately revealing the balances. Temasek and Sequoia were among the capital companies majorly exposed to the beleaguered exchange.

Larry Fink Anticipates the Securities’ Tokenization to Be the Future

Since the occurrence of FTX’s downfall, the equity of both firms touched zero, whereas the Ontario Teachers’ Pension Fund additionally has a strategy to do the exact with up to $95M worth of investment thereof. Notwithstanding the issues prevailing across the crashed FTX, Fink (who was a crypto skeptic once) showed a bullish sentiment for the tech sector.

He added that the upcoming generations of securities as well as the markets will take into account the securities’ tokenization. This field has long been witnessing significant and exclusive advancements and the decentralized blockchains are the prominent organizations that have started the trade of tokenized bonds and securities openly.

On-chain decentralized exchanges are becoming more famous, however, this might be far from the blockchain-powered conventional markets. Formerly this month, the Australian Securities Exchange began its project of $170M converting the settlement layer of the entity into a system powered by blockchain following a development of 3 years. Accenture, a consulting platform, provided its opinion that the respective shift was unsustainable because of the high latency of the distributed ledger.

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