Hi. I am Aaron Weinman. BlackRock has slowly made its way into the choppy seas of digital assets.
BlackRock, alongside other investors, committed $400 million in funding for fintech Circle, which issues a U.S. dollar-pegged stablecoin known as USDC, in April. Shortly after, Insider first reported that BlackRock would be launching a blockchain and crypto-themed exchange-traded fund.
Then last month, BlackRock signed a partnership with Coinbase to connect customers on its Aladdin platform with crypto. Later in August, BlackRock announced that it start a private trust to provide bitcoin exposure to its US institutional clients.
All of this activity comes amid a sharp drop in digital asset prices, layoffs at Coinbase, and the possibility of further regulation from the U.S. Securities and Exchange Commission.
BlackRock, one might say, has done much more than just gain exposure to crypto. In fact, he put together his own crypto team, Insider’s Rebecca Ungarino reported here.
Let’s take a look at 10 leaders shaping the company’s crypto efforts.
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1. BlackRock relies on 10 leaders to refine its strategy towards crypto and the broader digital asset space. The company’s foray into crypto comes at a difficult time for the space, which is crippled by falling asset prices and broader market instability.
Despite the seesaw nature of crypto, the participation in the sector of the largest fund manager in the world lends great credibility to the asset class.
Even with the slowdown, Larry Fink, chief executive of BlackRock, said on the company’s July earnings call that it was seeing “more interest from institutional clients” on how to access cryptography.
However, the main challenge for traditional financial services companies like BlackRock is tapping into the talent pool of digital assets. At the heart of the matter is pivoting legacy institutions to the rapidly changing world of crypto.
To help with this, BlackRock has assembled a crypto team. Here’s a bit more about them.
In other news:
2. JPMorgan’s fees from its investment bank could drop up to 50% from year to year, as revenue from underwriting and mergers and acquisitions plummetssaid the bank’s head of corporate and investment banking. The Bank of America chief executive also said BofA would likely see a similar drop in fees, but added that the bank’s strong deal pipeline would help the business. resume once markets stabilize. The two banks expressed caution on job cuts, unlike Goldman Sachs, which could lay off hundreds from this month.
3. Security startup Tanium is trying to get close to Microsoft and prepare for acquisition. The $9 billion startup has seen two rounds of job cuts in the past month as hopes of a possible initial public offering fade, current and former staff told Insider.
4. Peloton went from a pandemic-era success story worth $50 billion to laying off more than 4,000 of its workforce. Here’s how the rise of the home exercise company turned into a rapid downfall.
5. Goldman Sachs is expected to raise about $15 billion for its latest mezzanine debt fund, Bloomberg reported. The fund, called GS Mezzanine Partners VIII, exceeded its initial target of $12.5 billion. In terms of repayment to lenders, mezzanine debt sits between senior debt and equity financing in a capital structure of a company.
6. Rising rates and slowing economic growth have left many businesses struggling with high debt loads and higher interest payments. The Financial Times has created a list of so-called “debt monsters” who are flashing warning signals.
7. KKR has made a portion of one of its private equity funds available for individuals to invest in a public blockchain, The Wall Street Journal reported. The investment firm is partnering with digital asset specialist Securitize, which will mark an interest in KKR’s strategic healthcare growth fund. The fund will be available to investors through the Avalanche Public Blockchain.
8. The biggest technology conference ever organized by Goldman Sachs is taking place in San Francisco. Tech executives from Microsoft and Qualcomm have shared their bleak outlook for the space. Here is an inside view of the bank event.
9. Twitter shareholders have approved Elon Musk’s $44 billion buyout of the social media company. As Musk tries to pull out of the deal, shareholder approval of his initial deal now sets the stage for a grueling legal battle. Here’s also a timeline of Musk’s chaotic nine-month saga to buy Twitter, from a poop emoji to a whistleblower appearing before Congress.
10. Gibson Dunn is one of the most prestigious law firms in the country. Here, two partners describe the characteristics they look for and the questions they ask when recruiting summer associates.
- Vista Equity Partners has hired Michael Charlton as managing director of its capital and partner solutions unit. Charlton will lead investor relations for Vista’s credit platform. Most recently, he was Managing Director of Anchorage Capital Group.
- Credit Suisse lost two bankers to Morgan Stanley and Bank of Montreal, Bloomberg reported.
- Daniel Cavalli joins Morgan Stanley as Chief Executive Officer. He led Credit Suisse’s coverage of financial institutions and mergers and acquisitions for Latin America.
- Amit Melwani, who joins the Canadian bank, was also an MD who covered consumer and retail mergers and acquisitions.