Goodbye BTC And ETH, BlackRock CEO Predicts Tokenization Will Be The Next Trend

BlackRock CEO, Lay Fink. (Photo; Doc. Avresco)

JAKARTA - Larry Fink, CEO of BlackRock, a US$10 trillion (equivalent to IDR 153.6 quadrillion) asset management giant, indicated that tokenization may be the next big trend in the crypto space.

In his annual letter to investors, Fink draws attention to the dramatic advances in digital payments taking place in emerging markets and compares this to the slow pace of innovation in developed markets such as the US.

According to Fink, the fragmentation of asset categories into tokens presents very encouraging prospects. He sees an opportunity in the digital asset space where the underlying technology can improve capital market efficiency, shorten value chains, and improve accessibility for investors.

BlackRock, under the leadership of Fink, is actively exploring the digital asset space with an emphasis on licensed blockchains and the conversion of stocks and bonds into tokens. However, Fink admits that even though the industry is maturing, there is still a lack of clarity on regulations.

He assured investors that BlackRock will apply the same standards and controls to crypto as they do throughout their business.

Fink also predicted that most crypto companies would fail during his recent appearance at a meeting. He revealed that BlackRock put $24 million into the defunct FTX exchange, but was then forced to mark that amount down to zero.

With the attention of one of the biggest players in the financial industry, tokenization could become the next big trend in the crypto world. However, players in the crypto market must pay attention to regulatory clarity before starting action in the digital asset space.