Coincidence? BlackRock Hires Former Ripple Executive

by Dalmas Ngetich
Coincidence? BlackRock, Worth $ 69.39 Billion, Hires Former Ripple Executive

BlackRock Inc., the largest asset management company in the world is set to undergo a massive management overhaul with the aim of focusing on alternative investments. The company recently hired a former executive of Ripple who is tasked with leading the digital asset team in the firm.

Blackrock To Focus on Alternative Investment

BlackRock, which is the largest asset management firm in the world with roughly $7 trillion in assets under management, has long declared an interest in cryptocurrencies and other alternative investments. The company has now made a bold move by hiring a former executive of Ripple, Robbie Mitchnick who is now set to lead the digital asset team at the company.

Mitchnick has been involved in the crypto sector for a few years now and is regarded as one of the best minds behind Ripple. The former Ripple exec has a deep understanding of cryptocurrencies and their underlying technology, and he is said to be interested in solving some of the murkiness around how investors view digital currencies.

Read: Experts to Discuss the IEO Trend at the Moscow Meetup

He, however, believes that XRP only has a 25 percent chance of success. He was quoted as stating that “#XRP 25 percent success chance. Current fair value $1.59 – $8.23, Success Value $32.91, Failure Value $6.37.”

Blackrock Inc Very Much Interested in Crypto

In July last year, the CEO of the company, Larry Fink revealed that they are currently evaluation cryptocurrencies. He stated that they have been assembling a digital currency unit that is looking into blockchain tech and cryptos such as Bitcoin. However, he noted that he is yet to see massive investor demand for such services at that time.

During an interview with Reuters, Fink stated that “As the largest asset manager in the world, its interest in crypto assets could be a catalyst for upward price movement.” He hoped that their entry could encourage other asset managers to explore the investment opportunities present in the crypto industry.

On November 1, 2018, Fink, while speaking at the New York Times DealBook Conference in Manhattan pointed out that BlackRock would launch a crypto ETF, but the market is not adequately regulated for them to do that yet. He stated that for them to introduce a crypto ETF, the crypto space would have to be backed by a government, with the decentralization of the industry a problem for BlackRock.

Also Read: SEC’s FinHub Issues its First Letter To A Cryptocurrency Startup

Fink is optimistic that a day would come when the company would have electronic trading for a currency that would serve as a store of wealth. However, he noted that the world doesn’t need a store of wealth at the moment. Fink added that even though the company is skeptical regarding cryptocurrencies, they are firm believers in blockchain technology and its power to revolutionize the financial industry.

Students at Top Business Schools Now Looking to Blockchain

Wall Street companies had to start exploring crypto and blockchain technology as students from elite business schools are increasingly looking into the blockchain space for opportunities. Recently hired by BlackRock, Robbie Mitchnick is one of those people.

The Stanford business school graduate told CNBC students from top universities in the United States are shying away from Wall Street to venture into blockchain tech. It is for this reason that Mitchnick believes the business schools should offer blockchain related courses considering the importance of this technology to the financial landscape.

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