BlackRock CEO Larry Fink shared his predictions for when cryptocurrencies will become an integral part of our lives. Speaking at the New York Times DealBook event, the executive emphasized the importance of “tokenization” for 3 cryptocurrencies.
Famous CEO says ‘tokenization’ is the future for cryptocurrencies
BlackRock CEO argued that securities will be traded in tokenized form in the future. Thanks to blockchain technology, traditional financial assets such as bonds, real estate or other commodities can be represented as tokens. Transactions involving these tokenized products can take place without the need for a corporate intermediary. Fink also said in his statements that this technology would be an attractive option because of “instant solutions”. He also said that disabling intermediaries would “lower fees even more dramatically.” According to him, such a scenario would mean a revolution in the functioning of financial markets.
A new era begins in finance
In November, JPMorgan conducted an experimental cross-border transaction using Polygon to tokenize the Singapore dollar, Japanese yen and bonds of the two countries. The experiment, the first of its kind, was a huge success. Thus, it proved that it would be possible for banks to migrate their daily processes to Blockchains. Even BlackRock is taking action on this. It was in the headlines in August after it announced that it would offer Bitcoin to its customers through a partnership with Coinbase. As a result, we are now seeing more and more financial institutions adopt Blockchain technology. According to experts, foundations like this will mark the beginning of a new era for the cryptocurrency market.
Tokenization will come for these three cryptocurrencies
The above technological expectations do not mean that all cryptocurrencies will benefit. Fink, for example, claimed that “many of these [cryptocurrency and blockchain] companies will not be around in the long run.” We can look to JPMorgan’s work to figure out which ones will survive. As you follow on Kriptokoin.com, JPMorgan used the Polygon network for its first DeFi transactions. This choice of the bank is that Polygon is compatible with Ethereum. In this way, in addition to its programmable nature that allows for the tokenization of assets, Ethereum serves as the largest DeFi platform overall. Therefore, Ethereum appears to be a beneficiary of traditional finance adopting dApp applications.
Ultimately, if what Fink points out becomes true, it will make cryptos like Bitcoin, Ethereum, and Polygon more legitimate. However, investors are tired of continuing to expect prices to recover soon. Currently, macroeconomic factors prevent most tokens from rising in price. However, experts are confident that the market will remain strong in the long run. Assuming headwinds such as high inflation and rising interest rates are dissipating, the crypto market has upside potentials.
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