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- 1 Larry Fink believes it is BlackRock’s mission to help as many people as possible.
- 2 Fink discusses how the US is lagging behind in terms of payments.
- 3 BlackRock intends to use optimum standards and controls on digital assets.
BlackRock CEO Larry Fink wrote to shareholders in the annual letter that the digital assets market has seen “quite intriguing changes.”
In particular, Fink draws attention to the expansion of Bitcoin and cryptocurrency use in Brazil, India, and several regions of Africa. The author talks about how “dramatic developments in digital payments” are “reducing costs and promoting financial inclusivity.”
The rise in bitcoin transactions in India, the Bitcoin Beach Brazil project, Bitcoin Ekasi in South Africa, and many more are just a few examples of how Bitcoin adoption is progressing in the nations where it is most needed. Bitcoin Magazine has closely followed these developments.
BlackRock’s Objective
Fink talked about how it is BlackRock’s mission to help as many people as possible to invest in a way that is transparent, affordable, and accessible.
To their clients, they have a fiduciary duty. The funds that they oversee belong to their clients, who put their faith in the company to look after their investments so they may plan for the future. Blackrock’s fiduciary responsibility is to each and every client, which they fulfil by looking for the best risk-adjusted returns within the parameters they establish. Their business model’s compelling simplicity is that when they provide value to clients and also increase value for their shareholders.
Larry Fink mentions how there has never been a more vital time for him to use his voice, “I have long felt that CEOs must utilize their voice in the world. I’ll act accordingly whenever and whenever I think it will benefit the firm’s and our clients’ interests.”
In recent years, he had written two letters each year – one on behalf of his customers to CEOs and the other to BlackRock shareholders. On the anniversary of BlackRock introducing Voting Choice in November, he wrote to the customers and CEOs to express his thoughts on the transformative potential of choice in proxy voting.
Tokenization of Assets
Fink added that established countries like the United States are lagging behind in comparison, leaving the cost of payments greater, in what may be a reflection on the United States’ own recent efforts of cracking down on major exchanges. In addition, the bankruptcy of the banks which provided financial services to these exchanges has severely hindered the market.
He talked about how it is abundantly evident that all of BlackRock’s shareholders, clients, employees, partners, the communities in which they do business, and the corporations in which their clients are invested—are dealing with a wide range of similar problems. Due to this, he drafted a letter to investors this year, which they’re also disseminating to all of their stakeholders.
He further adds how customers have always been the focus of all that they do. Their clientele ranges widely in terms of their investing goals, preferences, time horizons, and risk tolerance. To help them achieve their investment objectives, they provide them with options and handle their assets in accordance with their goals and regulations.
Tokenization of asset classes, in particular, “offers the potential of boosting efficiencies in capital markets, reducing value chains, and enhancing cost and access for investors,” adds Fink.
Conclusion
Although Fink spoke about tokenizing existing assets, it is worth pondering if BlackRock and other sizable financial institutions will see past the government’s response to the recent bank failures and believe that the primary application of blockchain technology is the tokenization of money.
While the market is evolving, there are unquestionably increased risks and a requirement for regulation, said Fink.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
