BlackRock CEO: FTX Token Caused The Downfall, But The Technology Is Still Revolutionary

Despite challenging tokens created by centralized exchanges, BlackRock CEO sees securities tokenization as the next evolution of the financial market .

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The CEO of the world's largest asset management company, BlackRock, believes that the reason FTX failed is that he created his own FTX token (FTT), which was centralized and therefore contradictory with "the whole basics of what cryptography is". ."

Larry Fink, who is chairman and CEO of the $8 billion investment firm, made the remarks at the New York Times Dealbook 2022 Summit held on November 30, and said added that despite his belief that the token created by FTX caused his downfall, he believes that the crypto and the blockchain technology behind it will be revolutionary.

BlackRock CEO Larry Fink s speaking at the DealBook 2022 Summit. Source: New York Times.

Centralized exchange tokens, such as Crypto.com's Binance Coin (BNB) and Cronos (CRO), account for over $57 billion on the $862 billion in total market capitalization. Fink suggested that he was still skeptical of these tokens and thinks "most of these companies [that control the tokens] won't be around anymore".

Later in the interview with New York Times reporter Andrew Sorkin, Fink said that while he sees exchange-traded funds (ETFs) as the cause of the previous shift in investing, he thinks tokenization will be behind the next one, noting:

"I believe the next generation for markets, the next generation for securities, will be the tokenization of securities."

He then elaborated on some of the potential benefits of tokenization, suggesting that it would change the investment ecosystem, because rather than relying on banks, "instant settlement" would be possible on distributed ledgers that show every . ..