Will BlackRock’s aggressive crypto exploration bear fruit?

Highlights

• BlackRock CEO Larry Fink in a letter suggested that he is open to explore cryptocurrencies.
• The letter added that BlackRock’s crypto study will widen to areas such as stablecoins and other underlying technologies.
• Fink was of the view that post the Russia-Ukraine crisis, the global digital payment system could get a facelift and will be taken more seriously.

After weeks of speculations, BlackRock (BLK) crypto has officially announced that it is exploring the paradigms of digital currencies and how they can benefit its clients in a better manner. The speculations started sometime in February when the news came out that the investment firm was looking to enter the space and suggested that its customers would be able to trade in cryptos through its integrated investment management platform Aladdin.

Though the details were not apparent at that time, a recent letter by CEO Larry Fink highlighted the points of what the boardroom can expect from their investors henceforth.

Fink, who had initially taken a grim view of the digital assets, has a changed view now as it seems he is willing to explore the domain deeper as the firm is more open towards the concept.

Also read: Why is Crypterium (CRPT) setting market on fire?

Serving clients better

In the letter, Fink suggested that BlackRock’s study is not just limited to the traditional crypto space but widened to stablecoins and other underlying technologies to offer services to the customers.

The CEO didn’t specifically mention any digital currency that the firm is exploring but generally touched upon the benefits of the digital assets. Although the crypto space is not new to the firm, it had only opened its Bitcoin Futures trading in September 2021. A month later, Fink had suggested that digital currencies have a role to play in the global economy.

The Russia-Ukraine crisis and digital coins 

Fink’s change of heart could also be linked to the role cryptos have played in the Russia-Ukraine crisis and how they have proved to be an alternate source of payment options. Fink also felt that post the Russia-Ukraine crisis, the countries worldwide could have a change of heart and look to reassess currency dependencies and perhaps look at it as a means of the payments system, which can bring in cost-effectiveness.

Also read: 5 Web3 wallets that are hot favourites among crypto enthusiasts

Fink also added that the global digital payment system could also be a powerful weapon to settle international transactions while reducing the risk of money laundering and corruption. 

Conclusion

This change of heart does indicate that asset management firms are more open to the idea of cryptocurrencies and are willing to explore the space. BlackRock’s entry could well be a game changer with the likes of Goldman Sachs, Morgan Stanley, etc., already exploring the area of cryptocurrencies.

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