Ethereum
The world’s largest asset manager has big plans for crypto
BlackRock Inc., the world’s largest asset manager, has deployed $100 million into Ethereum in anticipation of the approval of BlackRock’s new digital liquidity fund. CEO Larry Fink believes that tokenization and exchange-traded funds (ETFs) will revolutionize finance, and many experts estimate that the tokenization market could reach $10 trillion in 2030.
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According to a March 19 deposit with the Securities and Exchange Commission (SEC), BlackRock launched a new initiative: the BlackRock USD Institutional Digital Liquidity Fund. The fund was formed in the British Virgin Islands in partnership with Securitize, an asset tokenization company based in San Francisco. BlackRock is gearing up for something big as a wallet on Ethereum linked to the company has been identified and holds $100 million in digital US dollars (USDC).
The creation of the BlackRock USD Institutional Digital Liquidity Fund follows the resounding success of the Bitcoin spot ETF approval in January. In an interview with Bloomberg earlier this year, Fink said: “If we could ETF a Bitcoin, imagine what we could do with all financial instruments. » ETFs have revolutionized the way investors can gain exposure to different asset classes and, in Fink’s eyes, will play a crucial role in the tokenization of asset classes in the future.
“We believe that ETFs are not a different technology than Bitcoin which was an asset storage technology,” Fink said. “We think the next step will be the tokenization of financial assets, which means that every stock, every bond will have its own QIP (qualified institutional placement); it will be on one general ledger… but most importantly it does is that we could personalize strategies through tokenization that suit each individual We would have instant settlement… because it’s just one line item.
A few months later, BlackRock’s filing of the Digital Liquidity Fund came as no surprise. With the success of the Bitcoin ETF, BlackRock and other institutions are realizing the power of crypto and blockchain. Fink’s vision for the future is clear. The combination of ETFs and tokenization will transform the financial landscape, making asset classes more accessible, transparent, customizable and secure. Blockchain technology will form the basis for large-scale asset tokenization. BlackRock’s strategic partnership with Securitize demonstrates the transformative power of blockchain and its ability to revolutionize the financial system.
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BlackRock is not the first major institution to turn to tokenization. Titan JPMorgan Chase & Co. launched Onyx Digital Assets, focusing on tokenization and processing more than $700 billion in transactions since 2015. Citi has been working with blockchain since 2015 and hired Ryan Rugg, a former executive at IBM, to lead the bank’s tokenization efforts. Another company, Franklin Templeton, has been running its FOBXX fund on the decentralized public blockchain Stellar since 2021 – the first fund to operate on a public blockchain.
BlackRock’s involvement in tokenization is expected to accelerate the widespread adoption of digital assets and blockchain technology. The market capitalization of tokenized assets could eclipse $10 trillion in 2030 in a bull case and $3.5 trillion in a bear case, according to a report by 21.co. Experts at Roland Berger also estimate that tokenization will be a $10 trillion market by 2030. The current market capitalization of tokenized assets is approximately $118 billion, representing a compound annual growth rate of 109% from 2024 to 2030, according to 21.co.
With the recent SEC filing, it’s clear where Fink and BlackRock have set their sights. With more than $9 trillion in assets under management, BlackRock is entering the tokenization market. While not the first, BlackRock is the largest and most influential player joining the space. The market for tokenized assets will grow exponentially as BlackRock brings credibility on top of its vast resources. The approval of Bitcoin ETF in January 2024 helped Bitcoin reached new all-time highs, proving the power of institutions in financial markets. With growing institutional interest from companies like BlackRock, tokenization will undoubtedly become a massive market.
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This item Larry Fink’s BlackRock Deploys $100M on Ethereum Blockchain: World’s Largest Asset Manager Has Big Plans for Crypto originally appeared on Benzinga.com
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