In a recent interview with CNBC’s Squawk Box, BlackRock CEO Larry Fink made a statement where he wants the US Securities and Exchange Commission (SEC) to speed up token approval for bonds and stocks. According to Fink, this will help streamline many processes and will help boost efficiency in the sector.
Fink also highlighted that with the token, proxy voting for BlackRock will revolutionize. “We will never have to cast a proxy vote anymore because every owner of the record will be notified through the token,” Fink said in the interview. With this idea, there could be a huge shift as it can empower investors while reducing costs.
Who will BlackRock benefit from the token?
With the stock and bond token, operations will be simplified and the management burden will be reduced. By digitizing property records and enabling real-time notifications, the process will ensure that there is transparency and accountability at every step. Investors can participate directly in decisions without any intermediaries, enhancing participation and trust.
Fink’s vision and its implications for the market
Larry Fink also emphasized the fact that the token will provide money to millions of investors, which will in turn increase value for BlackRock shareholders. If bonds and stocks are all tokenized, it may provide a new use case for traditional finance within blockchain technology.
Impact on crypto and traditional markets?
Stock and bond tokenization can bridge the gap between crypto and traditional finance. Since Crypto is used to face regulatory scrutiny, the token can bring legitimacy to the table for the Blockchain industry and applications. However, there are chances that there will be challenges around existing crypto frameworks, raising questions about regulations, interoperability and market dynamics.
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