Company with $9 trillion in AUM plans on discovering the cryptocurrency industry
One of the world’s largest fund managers, BlackRock, Inc., which raised $400 million for stablecoin issuer Circle, is actively researching cryptocurrencies. Earlier, BlackRock’s chief executive said the company had been actively working with Circle for more than a year, according to the WSJ.
BlackRock, with over $9 trillion in assets under management, is broadly studying the crypto sector, including stablecoins, digital assets, permissioned blockchains and tokenization in general. The main reason behind the active studying of the cryptocurrency industry is tied to increased interest from the company’s clients.
Previously, the co-founder of PayPal insisted on blacklisting the likes of Fink, Jamie Dimon, and even Berkshire Hathaway CEO Warren Buffett, who has repeatedly stated that Bitcoin has no value, has characteristics of a Ponzi scheme and is nothing but a scam.
BlackRock to manage USD Coin
Reportedly, Circle has raised $1.1 billion overall and plans on going public via the SPAC deal later in the year. During the past year, BlackRock was actively working with the company and now plans on becoming a primary manager of reserves that are backing up the stablecoin.
USD Coin, with the ticker name of USDC, is one of the largest stablecoins in the cryptocurrency market, with $51 billion in circulation. The coin provides exposure to traditional currency and can be used as a trading bridge between fiat and digital assets.
Another large stablecoin issuer, Tether, provides the same service for cryptocurrency users by issuing various stable assets on blockchains like Omni, Ethereum and Tron. Despite being the biggest stablecoin on the crypto market, financial experts are constantly raising concerns over reserves used for backing up the stablecoin as there is a chance that the company is using commercial papers that are illegall in the U.S.
