Company with $9 Trillion in AUM Plans to Explore the Cryptocurrency Industry
One of the world’s largest wealth managers, BlackRock, Inc.—which raised $400 million for the Circle stablecoin issuer—is actively studying cryptocurrencies. Earlier, the BlackRock chief executive had said that the company has been actively working with Circle for over a year, claims the WSJ.
BlackRock, with over $9 trillion in assets under management, is broadly studying the crypto sector, which includes stablecoins, digital assets, licensed blockchains and tokens in general. The main reason behind the active study of the cryptocurrency industry is related to the increasing interest of the clients of the company.
Previously, the PayPal co-founder insisted on blacklisting people like Fink, Jamie Dimon, and even Berkshire Hathaway CEO Warren Buffett, who repeatedly said that bitcoin has no value, a symptom of a Ponzi scheme. And it is nothing but a scam.
BlackRock to Manage USD Coin
Reportedly, Circle has raised $1.1 billion in total and plans to go public through the SPAC deal later this year. Over the past year, BlackRock has been actively working with the company and now plans to become the primary manager of the reserves backing the stablecoin.
USD Coin, with the ticker name of USDC, is one of the largest stablecoins in the cryptocurrency market, with a circulation of $51 billion. The coin allows exposure to traditional currency and uses it as a bargaining bridge between fiat and digital assets.
Tether, another large stablecoin issuer, offers similar services to cryptocurrency users by issuing various stable assets on the blockchain such as Omni, Ethereum, and Tron. Despite being the largest stablecoin on the crypto market, financial experts continue to raise concerns over the reserves used to back the stablecoin as there is a chance that the company may be using commercial paper that is illegal in the US.