Ethereum
Ethereum wins over permissioned blockchains: BlackRock CIO
As part of a pronounced shift in the digital asset landscape, the world’s largest asset manager, BlackRock, has reported stronger alignment with public blockchain networks, including Ethereum, compared to permissioned alternatives. This key insight emerged during the conference “Beyond Bitcoin ETFs – What’s Next on the Institutional Roadmap?” panel at Coinbase’s State of Crypto Summit 2024 on Thursday.
BlackRock doubles its stake on Ethereum
Samara Cohen, BlackRock’s chief investment officer for ETF and index investments, expressed a decisive stance on the evolution of blockchain technology in financial markets. Cohen said: “A few years ago, we thought private permissioned blockchains would lead. We now realize that public blockchains are better for the ecosystem.
His remarks at the summit reflect a broader consensus that has gradually formed among traditional market participants who favor open source platforms like Ethereum to avoid fragmenting liquidity and ensure broader and more efficient market participation.
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Blackrock CIO of ETF and index investments @Samaraepcohen said today at the Coinbase event that permissioned blockchains have lost out and traditional market participants are coalescing around open source. #Ethereum for tokenization, so as not to fragment liquidity 👍
– Matthew Sigel, recovering the DWI (@matthew_sigel) June 13, 2024
This pivot aligns with the recent initiative by BlackRock, which launched its first tokenization project on the Ethereum blockchain in March. In collaboration with Securitize, a US-based company, BlackRock tokenized the “Institutional Digital Liquidity” fund. This move brought the platform an initial liquidity of $100 million, denominated in USD Coin (USDC). The fund invests primarily in cash, short-term debt securities and US Treasury Bondsusing Ethereum architecture to facilitate its operations.
Hunter Horsley, CEO of Bitwise, further confirmed BlackRock’s move toward public blockchains. Speaking separately, Horsley Underlines the definitive conclusion to the long-running debate between the merits of permissioned and permissionless blockchains, stating: “It used to be a debate. Quietly, the will was settled: without permission.
Anthony Sassano, renowned angel investor, advisor and founder of Daily Gwei commented: “Read and digest this seriously. An executive from BlackRock (the world’s largest asset manager) tells you that the future is public blockchains – more precisely, that the future is Ethereum! If that doesn’t make you optimistic, nothing will.
The roundtables also featured insights from other financial leaders such as Sandy Kaul, senior vice president of Franklin Templeton, and Alesia Haas, CFO of Coinbase. The theme of the panel highlighted the year 2024 as a pivotal point for deeper integration of cryptocurrencies and traditional financial sectors (TradFi) through instruments such as AND F and tokenization of assets.
The consensus among these financial leaders highlights a significant trend: the integration of blockchain technology into traditional financial practices is not only growing, but is also doing so through platforms offering transparency, accessibility, and broad governance. Ethereum’s preference over blockchains licensed by institutions like BlackRock marks a remarkable development.
At press time, ETH was trading at $3,522.
Featured image created with DALL·E, chart from TradingView.com