BlackRock has been rumored to be planning an entry into the cryptocurrency market, thus causing some excitement in the crypto space considering that the firm is currently the largest asset manager in the world.
Sources familiar with the matter claim that the company has a team of experts from different parts of its business to study blockchain technology and cryptocurrencies. According to the sources, the team will also carry out research into what BlackRock?s rivals are doing as far as digital currencies are concerned and how that could affect its business.
?We see cryptocurrencies potentially becoming more widely used in the future as the markets mature,? stated BlackRock earlier this year in a weekly statement.
Despite its statement, BlackRock also pointed out that it believes digital currencies are risky and only those who are not worried about making losses should invest in them. It is not clear if it is the recent claims about the team are real, but if they are, then it will be an interesting turnaround in previous opinions of the company?s CEO, Larry Fink about Bitcoin. The CEO described Bitcoin as an avenue for money laundering in October last year.
Reversed opinions about cryptos
Fink made the statement about Bitcoin on the same day that Jamie Dimon, the CEO of JPMorgan Chase stated that those investing in Bitcoin were stupid. However, a lot of traditional finance companies have changed from being against cryptocurrencies to having a soft spot for them. Having the investment firm in support of digital assets could be great news for the cryptocurrency market given that BlackRock is the largest asset management firm and it has a lot of experience.
BlackRock?s portfolio spans different regions including Australia, South America, North America, Africa, Asia and the Middle East. The company also has a long list of clients that include governments, mutual funds, charities, insurance companies and other corporates.
Meanwhile, the cryptocurrency market seems to be shaping up into the most appealing market and as such, more traditional companies are jumping on board. Companies like BlackRock are evaluating the market so that they do not miss any opportunities that could be highly beneficial.