BlackRock Considers Offering Crypto Services amid Russia-Ukraine Conflict

BlackRock (BLK) CEO, Larry Fink, has confirmed that the world’s largest asset manager is studying ways in which digital currencies and technologies can serve their clients as a direct response to the conflict between Russia and Ukraine in a letter to shareholders on Thursday. 

“As we see increasing interest from our clients, BlackRock is studying digital currencies, stablecoins and the underlying technologies to understand how they can help us serve our clients,” he said. 

The letter to Blackrock’s shareholders opened up with his view on the current conflict between Russia and Ukraine, where he emphasized his overwhelming support for Ukraine. He also articulated the ramifications of this ongoing conflict on Europe and the world at large. 

As a result, he noted digital currency as being instrumental in this situation. The current economic sanctions on Russia have forced many countries that rely on them for energy to look for decentralized payment methods. On the contrary, Ukraine has raised more than $100 million in cryptocurrency, which was legalized on March 16, of this year. 

Fink explained that a global digital payment system would enhance the settlement of international transactions while simultaneously reducing the risk of money laundering and corruption. It can also bring down the costs of cross-border payments, allowing expats to send some of their earnings back to their families. 

These comments seem to confirm a CoinDesk report from last month that claimed the New York-based asset manager was planning to offer crypto trading services, which is a direct contradiction to Fink’s thoughts about crypto in July of last year. In an interview with CNBC the CEO said he wasn’t seeing a demand for crypto amongst Blackrock’s clients. 

Clearly the increased popularity of crypto and digital assets coupled with the conflict in Europe has caused Fink to do some reevaluating. Only time will tell if the $10 trillion asset manager will take cryptocurrency and digital assets head-on. 

Author: Tyler Irvin

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