BlackRock's Fink says crypto technology still relevant despite FTX – Reuters

NEW YORK, Nov 30 (Reuters) – BlackRock Inc (BLK.N) Chief Executive Larry Fink said on Wednesday that there appear to have been "misbehaviors" by the now-bankrupt FTX crypto exchange, but that the technology behind crypto is relevant for the future.
"We're going to have to wait to see how this all plays out (with FTX)," Fink said. "I mean, right now we can make all the judgment calls and it looks like there were misbehaviors of major consequences."
He made the comments at an event hosted by the New York Times DealBook, adding he believes that most crypto firms "are not going to be around" in the future.
FTX filed for Chapter 11 bankruptcy protection in the United States on Nov. 11 following its precipitous collapse, saying it could owe money to more than 1 million creditors.
BlackRock invested $24 million in FTX through a billionaire fund it manages, he said. Other global asset managers such as Temasek Holdings, venture capital fund Tiger Global and Sequoia Capital have also invested in Sam Bankman-Fried's FTX.
Despite all the problems around FTX, Fink said he considers the technology behind crypto "will be very important." He added: "I believe the next generation for markets and next generation for securities will be tokenization of securities."
Earlier on Wednesday, U.S. Treasury Secretary Janet Yellen said she remains skeptical about cryptocurrencies and called for regulation.
Fink gave a gloomy picture of the economy, citing a higher-than-usual inflation rate, elevated interest rates and lower growth, and limited room for fiscal stimulus.
"We're actually going to enter a period of more what I would call malaise," he said. "We're just not going to have an economy that is based on real growth that we were accustomed to."
Still, he believes the environment for investments is more favorable, especially in investments that rise with interest rates.
Our Standards: The Thomson Reuters Trust Principles.
The U.S. Commodity Futures Trading Commission (CFTC) chairman Rostin Behnam told lawmakers on Thursday that he met with former FTX chief executive officer Sam Bankman-Fried 10 times to discuss the company's clearing house application.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.
Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2022 Reuters. All rights reserved

source