The world’s largest asset management company, Blackrock Inc. (NYSE: BLK), is led by Larry Fink, who spoke with the New York Times Dealbook Summit attendees last week about cryptocurrencies and the defunct exchange FTX.
At the end of the third quarter, Blackrock managed $7.96 trillion in assets. According to the CEO, a billionaire fund that the asset management company oversees made a $24 million investment in Sam Bankman-FTX. Fried’s
Fink stated: “We’ll have to wait and watch how this all plays out in regard to the FTX breakdown… It appears that there were serious penalties for the misbehavior, I mean, we can make all the judgments right now.
Fink asserted that blockchain technology is important for the future, despite the issues with FTX. The Blackrock CEO stressed that the technology underlying bitcoin “will be very essential,”
“The tokenization of securities, in my opinion, will usher in the next generation of markets and securities.”
Sometime in November, the cryptocurrency exchange had filed for bankruptcy coupled with the CEO resignation.
Billions of dollars are owed by the corporation to an estimated million debtors. The Ontario Teachers’ Pension Plan, Temasek Holdings, Tiger Global, and the Singaporean government’s Temasek Holdings were among the other international asset managers that made investments in FTX.
Many people are pushing for more stringent crypto supervision following the FTX collapse. U.S. Treasury Secretary Janet Yellen stated last week that there is insufficient regulation of cryptocurrency.
“Crypto is big sufficiently that we’ve had significant harm with investors,” she said. “It’s a Lehman situation within crypto.”
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