BlackRock Makes $24 Million Investment In FTX Cryptocurrency Exchange

The now-defunct cryptocurrency exchange FTX received a $24 million investment from BlackRock, according to Chairman and CEO Larry Fink. He continued by saying that even though FTX crashed, the technology underlying cryptocurrencies will continue to be useful.

Because FTX developed its own centralized FTX token, according to Fink, the company collapsed (FTT). The decentralized nature of cryptocurrencies was at odds with the token’s structure.

On November 30, the Blackrock CEO made these comments during a speech at the New York Times’ 2022 Dealbook Summit. Despite his opinion that FTX’s token is directly to blame for the company’s demise, he asserted that the technology underlying cryptocurrencies and blockchain is revolutionary.

Many of the exchanges issuing centralized tokens, in Fink’s opinion, won’t be in operation in the future.

According to Fink, the tokenization of securities will be the hallmark of the upcoming market and security generations. Due to transactions taking place on trustless distributed ledgers rather than banks, this development will change the way the investing ecosystem functions.

Fink continued, “Think about instantaneous settlement [of] bonds and stocks; there would be no middlemen, and we would further reduce fees.

Cryptocurrency & Blackrock Link

Large-scale cryptocurrency investments have been made this year by Blackrock, the largest asset manager in the world.

Blackrock introduced an exchange-traded fund (ETF) for its European clients on September 27. The iShares Blockchain Technology UCITS ETF is the blockchain that drives it.

Related Reading | Keyrock Secures $72 Million Series B Funding Led By Ripple

BlackRock claims that 75% of its investments are in blockchain-related businesses, such as exchanges and miners, and the remaining 25% are in businesses that support the blockchain ecosystem.

On November 3, Circle declared that it would put some of its money into the Circle Reserve Fund, which was established in collaboration with BlackRock. The circle is the creator of the USD Coin.

Comments (No)

Leave a Reply