BlackRock CEO Backs Tokenizing Assets Like Stocks and Bonds

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Jeff Horseman
Jeff Horseman
Jeff Horseman got into journalism because he liked to write and stunk at math. He grew up in Vermont and he honed his interviewing skills as a supermarket cashier by asking Bernie Sanders “Paper or plastic?” After graduating from Syracuse University in 1999, Jeff began his journalistic odyssey at The Watertown Daily Times in upstate New York, where he impressed then-U.S. Senate candidate Hillary Clinton so much she called him “John” at the end of an interview. From there, he went to Annapolis, Maryland, where he covered city, county and state government at The Capital newspaper. Today, Jeff writes about anything and everything. Along the way, Jeff has covered wildfires, a tropical storm, 9/11 and the Dec. 2 terror attack in San Bernardino. If you have a question or story idea about politics or the inner workings of government, please let Jeff know. He’ll do his best to answer, even if it involves a little math.
  • The company will keep looking into the digital asset sector as per the CEO.
  • Larry also discussed the improvements in payment systems.

Larry Fink, CEO of the biggest asset management firm in the world, BlackRock, thinks tokenizing asset classes like stocks and bonds might enhance efficiency in capital markets and increase investor access.

BlackRock is looking into the digital asset sector, and the CEO said in his most recent annual letter to shareholders that the company will keep looking into it, particularly in permissioned blockchains and the tokenization of stocks and bonds.

According to Fink’s letter, the practical applications of digital assets are not limited to Bitcoin alone. Behind the hoopla and infatuation with cryptocurrencies, the CEO revealed that exciting things are underway in the fledgling sector.

Payment Innovation in U.S Lagging 

While significant crypto companies like FTX have failed, digital payment methods are developing quickly. Fink thinks the expansion of the digital domain might lead to novel uses for the asset management sector.

Moreover, the BlackRock CEO also discussed the improvements in payment systems and financial inclusion in developing areas such as Brazil, India, and portions of Africa. Contrarily, he said that advanced economies like the United States lag behind developing countries when it comes to payment innovation.

U.S. officials have been cracking down on crypto businesses in recent weeks. Authorities have tightened regulation of the digital asset business in response to problems with stablecoin issuance firm Paxos and the sudden collapse of crypto-friendly Signature Bank.

Fink, though, thinks the digital asset area requires more nuanced regulation as the sector develops. He alluded that more transparent regulations will assist investors to understand the dangers of the market.

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