The CEO of the worlds largest asset management firm, BlackRock, believes that the reason why FTX failed is because it created its own FTX Token (FTT), which was centralized and therefore at odds with the “whole foundation of what crypto is.”
BlackRock CEO Larry Fink speaking at the 2022 DealBook Summit.
Centralized exchange tokens, such as Binance Coin (BNB) and fellow exchange Crypto.com’s Cronos (CRO), account for over $57 billion of the $862 billion total crypto market cap.
Later in the interview with New York Times’ journalist Andrew Sorkin, Fink said that while he sees Exchange Traded Funds (ETFs) as being the cause for the previous evolution of investing, he believes that tokenization will be behind the next, noting: “I believe the next generation for markets, the next generation for securities, will be tokenization of securities.”
BlackRock has been an active investor in the crypto industry since 2020.
Its latest move was revealed on Nov. 3, in which it announced it would be managing USD Coin (UDSC) issuer Circle’s reserve fund.
Source: Cointelegraph
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