Crypto: Larry Fink shoots FTT and finds blockchain revolutionary

Active since 2020 in crypto, BlackRock has already developed numerous products and investments in the sector. Its CEO has spoken out on the FTX case and the future of blockchain.

No to native tokens of crypto exchanges, yes to tokenization

The reason for the bankruptcy of the crypto exchange, FTX is that it created its own token, FTX Token (FTT). That’s what has declared Larry Fink, CEO of BlackRock, the world’s largest asset management company. It was on November 30, during the Dealbook Summit, a conference organized by the New York Times. According to him, FTT was centralized and therefore in opposition to the very foundation of what crypto is. A valid observation for tokens from centralized exchanges, like BNB, he said, before hammering that he remains convinced that without FTT, FTX would not have sunk.

In this regard, Fink spoke of his skepticism towards the platforms’ native tokens. Among other things, he criticized the management of the crypto exchange. He thus joins a good number of people who allege that there was risky management and reckless risk-taking at the level of the exchange. “At this time, we can say that there appears to have been misconduct in the management of FTX. »he said.

However, the BlackRock boss sees the tokenization of securities as the next step in the evolution of the financial market.

“If we consider that exchange-traded funds are the origin of the rise of investments in cryptos, I think that tokenization will be at the origin of the next (…) It would change the ecosystem of the investment, because rather than trusting banks, instant settlement would be possible on open source ledgers, which show every owner and seller of securities (…) Think instant settlement of bonds and stocks, without intermediaries. We are going to bring the fees down dramatically”did he declare.

BlackRock manages approximately $8 trillion in assets. He is also involved in a multitude of projects in the crypto universe. Separately, he revealed that he invested $24 million in FTX. An investment that has already been depreciated.

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