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Larry Fink: The FTX fiasco doesn't put an end to tokenization

Friday, 02 December 2022

Revolutionizing Markets: BlackRock CEO Larry Fink Believes in Tokenization of Securities

BlackRock CEO Larry Fink has weighed in on the recent failure of FTX, attributing it to the creation of its own FTT token. Fink believes that the token was a primary factor in the downfall of the exchange. He stated that FTX was centralized and that its policies were contrary to the fundamental principles of cryptocurrency. However, despite this, Fink maintains that he sees great potential in blockchain technology and cryptocurrencies, which he believes will revolutionize the financial markets.

"I believe the next evolution of the markets will be the tokenization of securities,"
said Fink.

Tokenization of Securities: The Next Evolution of Markets

Fink believes that tokenization of securities is the next big thing in the evolution of investing, following crypto-exchange-traded funds (ETFs). He predicts that distributed ledgers will enable "instant settlement" without the need for intermediaries like banks. This would be made possible by the transparent nature of distributed ledgers, which show every owner and seller of securities.

Fink is skeptical about the CeFi token market and believes that most of the companies in this space will eventually leave the market. Despite the fact that the token capitalization of centralized exchanges such as Binance Coin and Crypto.com is over $57 billion, out of a total market capitalization of $862 billion, Fink remains cautious.

BlackRock and Blockchain

In September, BlackRock launched an ETF for shares of companies working with blockchain technology. The ETF enables investors to gain exposure to companies that are directly or indirectly involved in the blockchain ecosystem. Fink sees great potential in blockchain technology, believing that it will revolutionize the financial industry in the coming years.

Conclusion

Larry Fink, the CEO of BlackRock, believes that the tokenization of securities is the next big thing in the evolution of investing. He acknowledges the potential of blockchain technology and its impact on the financial industry. Fink is cautious about the CeFi token market but believes that the future of investing lies in the transparency and instant settlement enabled by distributed ledgers. BlackRock has already made moves to embrace blockchain technology with the launch of its blockchain ETF in September.