In a recently published annual letter to investors on March 17, 2023, Larry Fink, the chairman and CEO of BlackRock, the world’s largest asset management company, discussed the potential of digital assets and their applications in the market. While Bitcoin has been the focus of much of the media’s attention in recent months, the CEO highlighted the developments happening beyond the headlines.
According to Mr. Fink, in many emerging markets, such as India, Brazil, and parts of Africa, digital payments have made huge strides, reducing costs and increasing financial access. Conversely, he noted that in the United States, there has been a slower rate of innovation, resulting in higher costs for payments.
“In many emerging markets – like India, Brazil and parts of Africa – we are witnessing dramatic advances in digital payments, bringing down costs and advancing financial inclusion. By contrast, many developed markets, including the U.S., are lagging behind in innovation, leaving the cost of payments much higher.”
Explores the Tokenization of Asset Classes
In the letter, the chairman of BlackRock also discussed the potential of tokenizing asset classes that could be used to reduce costs in capital markets, simplify value chains, and improve access and cost for investors. Mr. Fink mentioned that tokenizing the assets could revolutionize the asset management industry and that the company is exploring the ‘tokenization of stocks’.
“At BlackRock we continue to explore the digital assets ecosystem, especially areas most relevant to our clients such as permissioned blockchains and tokenization of stocks and bonds.” – Larry Fink said.
In addition, the CEO of the investment giant noted that though there are heighted risks present in the cryptocurrency market, BlackRock is still optimistic about the potential of digital assets. The company sees the industry as maturing and believes that the operational potential of the underlying technologies will continue to offer exciting opportunities.
