According to BlackRock CEO Larry Fink's annual letter to investors, tokenization might be the upcoming big thing in the cryptocurrency industry.
According to the head of the $10 trillion asset management behemoth, Bitcoin has caught headlines as a mere distraction, with the media's "obsession" obscuring other interesting developments happening in the cryptocurrency space.
Fink draws attention to the significant developments in digital payments happening in developing nations like Brazil and some regions of Africa. He compares them to industrialized nations like the US, where the cost of payments is still high, and their slow rate of innovation.
The president of BlackRock sees a chance in the area of digital assets, where underlying technology may boost capital market effectiveness, reduce value chains, and improve accessibility for investors.
His opinion is that the division of asset classes into tokens is a really positive development.
Using permissioned blockchains and the conversion of stocks and bonds into tokens, he has stated that Blackrock is actively exploring the world of digital assets.
Despite the industry's maturation, Fink concedes that there is still a lack of regulatory certainty. Investors have been reassured by him that they will use the same standards and controls for cryptocurrency as they use for the rest of their business.
Fink recently spoke at a symposium and projected that the majority of bitcoin businesses will fail. The head of BlackRock also said that the company invested $24 million in the now-defunct FTX exchange but was later forced to write that amount off to zero.
