BlackRock’s Fink said crypto technology remains relevant regardless of FTX

NEW YORK, Nov 30 (Reuters) – BlackRock Inc (BLK.N) CEO Larry Fink said on Wednesday that the now-defunct crypto exchange FTX appears to have engaged in “inappropriate behavior” but said the technology behind crypto trading is relevant for the future.

“We’ll have to wait and see how it all plays out (with FTX),” Fink said. “I mean right now we can make all the judgment calls and it looks like there was misconduct that had major consequences.”

Speaking at an event organized by the New York Times DealBook, he added that he believes most crypto firms are “not going to exist” in the future.

FTX filed for Chapter 11 bankruptcy protection in the US on November 11 sharp declineMore than 1 million creditors are said to be in debt.

BlackRock has invested $24 million in FTX through the billionaire fund it manages, he said. Other global asset managers have also invested, including venture capital funds Temasek Holdings, Tiger Global and Sequoia Capital. by Sam Bankman-Fried FTX.

Despite all the issues surrounding FTX, Fink said he believes the technology behind the crypto is “going to be very important.” He added: “I believe the next generation of markets, the next generation of securities, will be the tokenization of securities.”

Earlier Wednesday, US Treasury Secretary Janet Yellen said she remained skeptical about cryptocurrencies. called for regulation.

Fink paints a gloomy economic picture, citing higher-than-normal inflation, rising interest rates, falling growth and limited fiscal stimulus.

“We’re actually going into what I would call a period of greater discomfort,” he said. “We’re just not going to have the real growth-based economy that we’re used to.”

However, he believes that the investment environment is more favorable, especially for investments that grow with interest.

Reporting by Carolina Mandle in New York Editing by Matthew Lewis

Our standards: Thomson Reuters Trust Principles.

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