Larry Fink on tokenisation
When Larry Fink is talking about the tokenisation of real-world assets in The Economist, the game has changed.
I tried to push this idea a few times over the years but met resistance and a Sisyphean climb of regulatory barriers.
On the entrepreneurial level, I didnât want to spend most of my timeâand cash, as a bootstrapperânavigating legal grey areas. The VCs I approached had deployed capital into startups that were attempting to solve this through (a) credit and (b) sub-advisors, both of which seemed fraught with complications.
Ironically, compliance wasnât the blocker. The KYC bits are relatively easy if you control onboarding to the protocol and vet the recipients of capital.
The real âproblem to be solvedâ was finding a fix for the âoracleâ problem: connecting real-world business activities (inputs to the income statement and balance sheet) to the chain reliably. That remains the hard problem.
The weight of BlackRock should accelerate tokenised funding of offchain (âreal-worldâ) businesses. I am excited to see how this expands access to capital for the worldâs entrepreneursâespecially the underserved.
Crypto is full of scams and bad actors. But the rails it provides for the creation and exchange of value globally are real.
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