BlackRock Chief Executive Larry Fink stated on Wednesday that the now-bankrupt FTX crypto exchange appears to have engaged in “misbehavior,” but that the technology behind crypto is relevant for the future.
“We’re going to have to wait to see how this all plays out (with FTX).” “I mean, right now we can make all the judgment calls and it looks like there were misbehaviors of major consequences,” Fink said.
BlackRock’s Fink stated that most crypto firms are not going to be around
At an event sponsored by the New York Times DealBook, he said the majority of crypto companies “are not going to be around” in the future.
Following its abrupt collapse, FTX filed for Chapter 11 bankruptcy protection in the US on November 11. It claimed it may owe money to more than 1 million creditors.
Through a billionaire fund it administers, BlackRock reportedly invested $24 million in FTX. In Sam Bankman-FTX, Fried’s other international asset managers including Temasek Holdings, the venture capital firm Tiger Global, and Sequoia Capital have also made investments.
Fink stated that he believes the technology behind crypto “will be very important” despite all of the issues surrounding FTX. “I think the tokenization of securities will be the next generation for markets and for securities,” he continued.
Treasury Secretary for the United States Janet Yellen called for regulation earlier on Wednesday and expressed her continued skepticism about cryptocurrencies. Fink painted a bleak picture of the economy, pointing to unusually high inflation, high-interest rates, slower growth, and a lack of room for fiscal stimulus.
It has also begun to evaluate how the infrastructure supporting the cryptocurrency market can be applied to its traditional money management business, which is the most recent indication that well-known fund groups are seriously considering digital assets.
BlackRock started providing cryptocurrency services in February. The New York-based company, which oversees over $10 trillion in assets for institutions, plans to enter the cryptocurrency market with “client assistance trading and then with their own credit facility,” according to one of the people. BlackRock would allow customers to borrow money by accepting crypto assets as security.