The CEO of the worlds largest asset management firm, BlackRock, believes that the reason why FTX failed is because it created its own FTX Token (FTT<\/a>), which was centralized and therefore at odds with the \u201cwhole foundation of what crypto is.\u201d<\/p>\n Larry Fink, who serves as chairman and CEO of the $8 billion investment company \u2014 made the remarks<\/a> during New York Times\u2019 2022 Dealbook Summit held on Nov. 30, and added that despite his belief that FTX’s own-created token caused its downfall, he believes that crypto and the blockchain technology which underpins it will be revolutionary.<\/p>\n Centralized exchange tokens, such as Binance Coin (BNB<\/a>) and fellow exchange Crypto.com\u2019s Cronos (CRO<\/a>), account<\/a> for over $57 billion of the $862 billion total crypto market cap. Fink suggested that he was still skeptical of these tokens and believes \u201cmost of these companies [controlling the tokens] are not going to be around.\u201d<\/p>\n Later in the interview with New York Times\u2019 journalist Andrew Sorkin, Fink said that while he sees Exchange Traded Funds (ETFs) as being the cause for the previous evolution of investing, he believes that tokenization will be behind the next, noting:<\/p>\n \u201cI believe the next generation for markets, the next generation for securities, will be tokenization of securities.\u201d<\/p><\/blockquote>\n He then elaborated on some of the potential benefits of tokenization, suggesting that it would change the investing ecosystem, as rather than trusting banks, \u201cinstantaneous settlement\u201d would be possible on distributed ledgers that show every owner and seller of securities.<\/p>\n \u201cThink about instantaneous settlement [of] bonds and stocks, no middlemen, we\u2019re going to bring down fees even more dramatically,” he explained.\u00a0<\/p>\n Related: <\/strong>Sam Bankman-Fried confronted over the fall of FTX in live interview<\/em><\/strong><\/a><\/p>\n Fink admitted that BlackRock had a $24 million investment in FTX, but refused to speculate on allegations that they and other venture capital firms such as Sequoia Capital<\/a> had failed to do the proper due diligence on FTX.<\/p>\n \u201dRight now we can make all the judgment calls that it looked like there was some misbehavior of major consequence […] if you look at the Sequoia\u2019s of the world they\u2019ve had unbelievable returns over a long period of time, I am sure they did due diligence.\u201d<\/p><\/blockquote>\n BlackRock has been an active investor in the crypto industry since 2020. Its latest move was revealed on Nov. 3, in which it announced it would be managing USD Coin (UDSC<\/a>) issuer Circle\u2019s reserve fund<\/a>. <\/p>\n Meanwhile, on Sept. 27, it announced the launch of an ETF giving investors exposure to 35 blockchain-related companies<\/a>.<\/p>\n<\/div>\n![](\"https:\/\/s3.cointelegraph.com\/uploads\/2022-12\/0b634ffc-c321-4cc3-a8aa-57fad9c91693.png\")