Benzinga - by Murtuza Merchant, Benzinga Staff Writer.
BlackRock (NYSE:BLK), the world’s largest asset manager with $10 trillion in assets under mangement, has been steadily building a multifaceted crypto strategy.
What Happened: Token Terminal, a research firm specializing in digital assets, has analyzed BlackRock’s approach to digital assets.
The company segments the crypto world into three primary categories:
- Crypto assets like Bitcoin (CRYPTO: BTC)
- Stablecoins such as USD Coin (CRYPTO: USDC)
- Tokenized assets, exemplified by BUIDL, an onchain money market fund
Bitcoin’s Strategic Utilization
Focusing on Bitcoin specifically, BlackRock recognizes several inherent benefits that bolster its appeal:
- Its internet-native structure providing global accessibility.
- Its utility in cross-border transactions enhancing transactional efficiency.
- Its capped supply serving as a hedge against inflation.
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Blockchain As A Transformative Technology
Beyond individual cryptocurrencies, BlackRock views blockchain technology as a revolutionary tool capable of overhauling traditional capital markets.
The potential benefits identified include operational capabilities around the clock, enhanced transparency and accessibility for investors, and reductions in fees with faster settlements.
Anticipating future trends, Token Terminal suggests that BlackRock might develop its own blockchain to consolidate the recordkeeping of its extensive holdings into a unified, interoperable, and transparent ledger, mirroring strategies employed by major platforms like Coinbase with their Base Layer-2 blockchain.
What’s Next: This strategic embrace of digital assets by BlackRock signals a significant shift in how traditional financial powerhouses are preparing to integrate blockchain and cryptocurrency into their operations.
Benzinga’s upcoming Future of Digital Assets conference on Nov. 19 will likely delve into these developments.
Participants will explore how BlackRock's strategies could set precedents for asset management within the crypto sphere, potentially discussing the impacts of large-scale adoption on global financial systems.
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