BlackRock, the global investment giant managing a staggering $10 trillion in assets, has entered the cryptocurrency space with a bang! A recent analysis by blockchain data provider Token Terminal sheds light on the firm’s comprehensive crypto strategy.
BlackRock is the world’s largest asset manager, with $10 trillion in assets under management.
We researched the firm’s crypto strategy, so you don’t have to.
Here’s what we found:
1. DIGITAL ASSETS (ASSET CLASS)
The firm divides the crypto asset class into three different… pic.twitter.com/YwRz5Lr2Kr
— Token Terminal (@tokenterminal) August 12, 2024
BlackRock’s Three-Pronged Crypto Strategy
BlackRock’s crypto strategy is divided into three distinct categories: digital assets as an asset class, Bitcoin as a specific asset, and blockchain as a transformative technology.
BlackRock is diversifying its approach to digital assets. The firm owns iShares Bitcoin Trust, which boasts $21 billion in assets under management (AUM).
It also has stakes in Circle, the company behind the USDC stablecoin, and Securitize, which acts as a transfer agent for the BUIDL on-chain money market fund.
BlackRock’s interest in Bitcoin stems from its unique advantages: global accessibility, transactional efficiency, and potential as an inflation hedge. The firm’s strategy likely includes plans to create similar products for other major cryptocurrencies like Ethereum and Solana.
BlackRock also sees blockchain technology as a game-changer for capital markets. The firm believes blockchain can enable 24/7 operational markets, improve transparency, and reduce fees. Speculation is rife that BlackRock may launch its own blockchain, following a similar path to Coinbase’s Base network.
This move could allow BlackRock to consolidate recordkeeping for its vast holdings across all asset classes onto a single, global, and transparent ledger.
Also Read: Michael Saylor Asserts: If You Fear Volatility, You Don’t Understand Bitcoin—Is He Right?
