$9.5T Asset Manager BlackRock is Studying Crypto, “We Believe That Will Play A Very Large Role”

$9.5 Trillion Asset Manager BlackRock is Studying Crypto, CEO says “We Believe That Will Play A Very Large Role”

Larry Fink, the CEO of the world’s largest asset manager, BlackRock doesn’t understand much about Bitcoin but said he sees huge opportunities in digitized currencies.

“I see huge opportunities in a digitized crypto-blockchain-related currency and that’s where I think it’s going and that’s going to create some big winners and some big losers,” he said during his conversation with CNBC.

But when it comes to the trillion-dollar asset BTC, Fink said he is “not a student of bitcoin” and does not know where it’s going to go.

“I can’t tell you whether it’s going to $80,000 or zero.”

“But I do believe there is a huge role for a digitized currency and I believe that’s going to help consumers worldwide.”

Interestingly, Bitcoin jumped 5% to nearly $57,300 on Wednesday, continuing the green month in which the cryptocurrency is up more than 30%.

When further asked about JPMorgan CEO Jamie Dimon calling the leading cryptocurrency “worthless,” Fink said he’s “probably more on the Jamie Dimon camp.”

In an interview this week, Dimon said, “(Bitcoin) makes no difference to me” but added, “Our clients are adults. They disagree. That’s what makes markets.”

But that doesn’t mean, the asset manager isn’t interested in the crypto market as on being asked when he has shifted in his view in offering access to crypto to BlackRock investors, Fink said,

“We’re studying blockchain and the whole concept of crypto and we believe that will play a very large role.”

Back in February, BlackRock’s chief investment officer of global fixed income Rick Reider said the firm had “started to dabble” in crypto assets. Then in a filing with the Securities and Exchange Commission (SEC) dated July 31 showed that the BlackRock Global Allocation Fund had been trading Bitcoin futures. The asset manager giant has also invested millions in Bitcoin mining companies.

On Wednesday, the New York firm reported a 16% increase in revenue to $5.05 billion while its assets under management jumped 21% to $9.46 trillion, as of Sept. 30 from $7.81 trillion a year earlier.

Earlier this week, at the Institute of International Finance, Fink had commented on inflation, saying he doesn’t believe that it is transitory.

“I’m not calling for stagflation — I don’t see any evidence of that — but do I see persistence in inflation? Yes.”

“I think it’s more than transitory related to supply-chain issues and commodity prices.”

While President Rob Kapito said at the time some clients are increasing allocations to various alternatives from 1% to up to 20%, the CEO said some are allocating more to equities.

“I don’t think there’s one global trend of going in and out of one product because [there are] inflationary fears and some clients don’t believe in that.”

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Author: AnTy

Cash Is “Not the Safest Asset to Hold” With the Printing Press Rolling: Ray Dalio

  • “We are in an era of the most massive MP3/helicopter money monetary stimulation since WWII” said Billionaire investor
  • Cash is trash and US dollar is on short squeeze, he said

Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates thinks cash is not the best asset to hold in a world where central banks are printing money and keeping interest rates low in response to the coronavirus pandemic.

Cash, non-interest-bearing money, “will not be the safest asset to hold,” said the billionaire investor during a Reddit Ask Me Anything event on Tuesday as “We are now in an era of the most massive MP3/helicopter money monetary stimulation since WWII.” And this money and credit creation cannot produce goods and services or employ people.

Cash is trash or king?

Clarifying his stance of “Cash is trash” while it is currently being seen as the king, Dalio said he believes central banks will print a lot of money and keep cash interest rates at such low levels that they will have negative real returns.

When the coronavirus hit and had a negative impact on earnings and balance sheets, asset value plummeted making cash look comparatively attractive. But central banks only created a ton more cash to buy debt and push interest rates lower.

“When you think about what assets are safe to own, and you think of cash, please remember that while it doesn’t move around in value as much as other assets, there is a costly negative return to it in relation to goods and services and other financial assets that amounts to about a couple of percent a year, which adds up.”

As such he still thinks cash is trash in relation to gold and some stocks that will retain or increase their value during reflationary periods.

What’s happening with the US Dollar?

When it comes to the US dollar in the backdrop of the rolling of the money printing press, the world’s currency is currently having a “short squeeze.” Dalio explained that,

“the world desperately needs dollars and, as a result, there is a global shortage of them, which supports the dollar.”

But with the “world’s printing press” producing more dollars, it is having a short squeeze which will eventually end because enough creation of USD will satisfy the shortage of dollars or it won’t in which case, there will be debt defaults and restructurings reducing the need for dollars. And at that stage, the dollar will weaken.

Are debt assets good storeholds of wealth?

In response to the global crisis, Dalio said he’s been surprised and inspired by healthcare workers, teachers and small merchants, and those on the front lines. He said,

“I think that pursuing peace and savoring life, rather than fighting over wealth and power, is much wiser.”

In one of his quotes, the bitcoin critic said,

“increasingly there will be questions by bondholders who are receiving negative real and nominal interest rates while there is a lot of printing of money about whether the debt assets they are holding are good storeholds of wealth.”

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Author: AnTy

SBI Ripple Asia Launches First Money Transfer Service Between Japan and Vietnam

  • Vietnam is a “booming” economy and of the most attractive ones around the world
  • SBI CEO: “We will also develop remittance services that incorporate crypto-assets in the future.”

SBI Ripple Asia and SBI Remit, an international money transfer service, announced the launch of the first Japan-Vietnam money transfer service in real currency using the Distributed Ledger Technology (DLT) with the Vietnamese bank, TPBank on Nov. 15.

SBI Ripple Asia is SBI Group in collaboration with Ripple Labs offering technology support to financial institutions interested in RippleNet.

TPBanks is their latest addition that will leverage Ripple technology to improve their business and customer experience.

SBI Group is also an investor in the bank and has a shareholding of 19.9%. Earlier this month, we reported that Tien Phong Commercial Joint Stock Bank (TPBank) has joined RippleNet. On this collaboration, Nguyen Hung, CEO of Tien Phong Bank said,

“Our cooperation with SBI Ripple Asia Co., Ltd on the application of blockchain technology in cross border money transfers marks an important turning point in enhancing our customer experience and makes international money transfers via TPBank faster, more convenient and safer than ever before.”

Booming Vietnamese Economy an Attractive Market

Vietnam-Japan is a “booming” remittance corridor with the popularity of Vietnamese residents in Japan growing 4.57 times over the past five years. These numbers are further expected to increase.

“The booming Vietnamese economy is one of the most attractive markets around the world,” said Yoshitaka Kitao, CEO, President and Representative Director of the SBI Group and a member of Ripple’s Board of Directors. He added,

“The adoption of RippleNet will further differentiate the company from its competitors. We will also develop remittance services that incorporate crypto-assets in the future.”

SBI Remit, that is in partnership with MoneyGram and major Asian financial institutions will provide the TPBank safe and convenient services for the Vietnamese customers in Japan through RippleNet.

RippleNet is Ripple’s settlement platform with a network of over 300 financial institutions worldwide to enable faster, lower-cost payments around the world. It will ensure that transactions are executed faster while managing safety and transparency.

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Author: AnTy