In an annual letter to investors published on March 17, 2023, Larry Fink, Chairman and CEO of BlackRock, the world’s largest asset manager, highlights the exciting developments taking place in the digital asset space. He noted that although Bitcoin has garnered a lot of media attention over the past year, there are interesting developments happening outside of the headlines.
according to mr. Fink, in many emerging markets, such as India, Brazil and parts of Africa, there are huge developments in digital payments, lowering costs and promoting financial inclusion. However, the BlackRock CEO noted that there is a lag in innovation in the US, which is driving up payments costs. He said:
“In many emerging markets – such as India, Brazil and parts of Africa – we are seeing huge advances in digital payments, lowering costs and promoting financial inclusion. However, many developed markets, including the US, are lagging behind in terms of innovation, making the cost of Payments are much higher.
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The Chairman also highlighted the potential for tokenization of asset classes that can enhance efficiency in capital markets, shorten value chains, and improve costs and investor access.
Mr. Fink noted that asset tokenization could help revolutionize the asset management industry, offering exciting applications of underlying technologies in the digital asset space. He also said that BlackRock is actively exploring “tokenizing stocks”.
“At BlackRock, we continue to explore the digital asset ecosystem, especially the areas most relevant to our customers such as licensing blockchains and stock and bond tokenization.” – said Larry Fink.
In addition, the chairman of the investment giant noted that while there are clearly elevated risks and the need for regulation in the cryptocurrency market, BlackRock is optimistic about the potential of digital assets.
The company sees the industry as mature and believes the operational potential of the underlying technologies will continue to present exciting opportunities.
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