Fink said that BlackRock is studying digital currencies and stablecoins due to increased client interest. “The war will cause many countries to re-evaluate their dependence on the currency,” he wrote in the letter. Fink pointed out that even before the start of the war, some countries were considering the use of digital currencies. He cited the example of the US Federal Reserve, which is studying a central bank digital currency (CBDC). Fink said that a thoughtfully designed global digital payment system can accelerate the settlement of international transactions by reducing the problems of money laundering and corruption. Along with this, the cost of transaction can also be reduced.
In the letter, Fink continues, “As client interest has increased, BlackRock has initiated the study of digital currencies, stablecoins, and related technologies. This will help understand how these can best serve the needs of our clients. ” BlackRock has previously stated that it plans to offer crypto trading to its investors. Fink reported two years ago that the growing popularity of bitcoin could be a sign that there is a potential for cryptocurrencies to become a place in the global financial system.
Cowen, a major US investment bank, has created a cryptocurrency and digital assets division. Called Cowen Digital, the unit will offer cryptocurrency trading to institutional investors. Along with this, custody solutions will also be provided through partnership with other firms. Cowen explained that the bank had been trading crypto on behalf of clients for several months, even before launching the new division. The bank said the new division will give institutional clients secure access to the digital asset ecosystem.
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