Written by: Techub News Compilation

Introduction

At the recent New York Times DealBook Summit, a highly anticipated conversation took place between Brian Armstrong, co-founder and CEO of Coinbase, and Larry Fink, chairman and CEO of BlackRock, the world's largest asset management company. These two leaders represented the new world of crypto and the old order of traditional finance and had once held opposing views—Fink famously referred to Bitcoin as a "money laundering index" back in 2017. Times have changed; BlackRock now operates the largest Bitcoin spot ETF (IBIT), with Coinbase as its custody partner. This dialogue not only serves as a public witness to a "historic reconciliation" but also delves deeply into the evolution of the role of crypto assets, the dramatic shifts in the American regulatory landscape, the grand vision of asset tokenization, and how AI is reshaping economic fundamentals. This conversation provides crucial perspectives for understanding how traditional finance and crypto finance are moving from confrontation to integration, and collectively defining the form of financial infrastructure for the next decade.

Summary

• Larry Fink explained his shift in perspective: viewing Bitcoin as "digital gold" and a store of value tool in response to fiscal deficits and geopolitical uncertainties, rather than as a speculative asset.
• Brian Armstrong pointed out that 2024 is a pivotal year for American crypto regulation to move from the "gray area" to a "beacon," with clearer regulations driving high-risk activities away from the U.S. market.
• Consensus between both parties: Asset tokenization is the future of finance, significantly reducing friction costs and democratizing investment, though the U.S. has fallen behind countries like India and Brazil in this area.
• Both Fink and Armstrong believe that AI will lead to a "K-shaped economy," where industry winners take all, profoundly impacting the job market and university education systems.
• Armstrong defended political lobbying in the crypto industry, describing it as "democracy at work," aimed at combating regulatory actions that seek to "illegally stifle the industry."

From "money laundering index" to the largest Bitcoin ETF: Larry Fink's cognitive evolution

The conversation began with host Andrew Ross Sorkin's pointed question: Larry Fink, the financial giant who publicly linked Bitcoin to "money laundering" and "thieves," why does BlackRock now manage the world’s largest Bitcoin spot ETF?

Fink acknowledged his transformation candidly. "You must evolve and change," he said. He recalled having more time to delve into research during the pandemic and engaged with many cryptocurrency advocates, repeatedly questioning himself: "What have I missed? Why did I hold such beliefs?" This process led him to gradually revise his viewpoint between 2021 and 2022. He clarified that his criticism back then "specifically referred to Bitcoin," not the entire crypto space. Today, he sees the vast application scenarios for Bitcoin.

Fink positions Bitcoin as an "asset of fear." He believes that people hold Bitcoin out of concerns for personal security (geopolitical risks) and financial security (currency devaluation). Its long-term fundamental value lies in hedging against the devaluation of fiat assets caused by fiscal deficits. He cited recent market fluctuations: when rumors about a U.S.-China trade agreement or potential reconciliation in Ukraine surfaced, Bitcoin prices fell, reflecting its characteristic as a hedging tool—when fear dissipates, its safe-haven demand temporarily lessens.

However, he warned that the Bitcoin market is still dominated by high-leverage participants, resulting in volatility far exceeding that of traditional assets. Nevertheless, he noted that the flow of funds is changing: more and more "legitimate, long-term investors" focused on buy-and-hold strategies are entering the space, including foundations, donor-advised funds, and even some sovereign wealth funds building positions in stages. "They are not trading; they are holding for specific long-term purposes," Fink emphasized.

When asked whether he agrees with Warren Buffett's label of Bitcoin as "rat poison" that will eventually go to zero, Fink flatly said "no way." He believes that Buffett and Charlie Munger's upbringing shaped their "dollar supremacy" belief, while democratic nations today are struggling to control deficit spending, giving rise to Bitcoin as a form of "digital gold." "It’s difficult for them to imagine a more decentralized world operating on the Internet," Fink summed up.

Regulatory Turning Point: From "Gray Area" to "Beacon"

Brian Armstrong attributed the early resistance of traditional financial institutions to crypto technology to the classic "innovator's dilemma." Large organizations are often divided internally: innovation departments embrace it actively while lobbying teams try to engage in "regulatory arbitrage" in Washington to stifle its development. Coinbase is currently collaborating with many large banks on stablecoin, custody, and trading pilots, sometimes encountering lobbyists from the same bank opposing these businesses in Washington.

However, Armstrong believes that 2024 is a historic turning point for U.S. crypto regulation. "When we look back in 2025, we will find that this year established the shift of crypto regulation from the gray market to a beacon." He cited three major advancements: 1) the passage of the Financial Innovation and Technology Act (FIT Act), which sets a crucial framework for stablecoins; 2) bipartisan passage of market structure legislation in the House, awaiting a Senate vote. He anticipates a Senate vote in the coming months, laying the groundwork for the normative development of the industry in the U.S.

In response to the host's question about the crypto industry "buying" opportunities through large political donations (approximately $130 million in the 2024 election cycle), Armstrong defended, stating that Coinbase's mission is to increase global economic freedom, with the preferred method through product integration of crypto and traditional finance. However, when government agencies "illegally attempt to stifle this industry," causing many businesses and consumers to suffer and go abroad, they have to resort to political action to "hold bad government accountable." He mentioned that organizations like Stand With Crypto have gathered substantial voter support for pro-crypto candidates, considering it "democracy at work."

Regarding the controversy of donating to the White House's new banquet hall potentially involving "buying influence," both Armstrong and Fink agreed with JPMorgan CEO Jamie Dimon's cautious stance. Fink emphasized that BlackRock's political contributions generally maintain a balance between the two parties, and all actions must withstand ethical scrutiny. Armstrong distinguished between charitable donations from a U.S. company and lobbying efforts aimed at establishing clear industry regulations, seeing both as important but needing to be viewed separately.

Tokenization: The "Next Big Thing" in Reshaping Global Financial Infrastructure

Larry Fink recently wrote an article in The Economist advocating strongly for asset tokenization. He believes that while the public is extremely focused on AI, discussions about how technology will reshape the financial services industry and achieve investment democratization are far too limited.

Fink envisions tokenization: digitizing all assets such as stocks and bonds, allowing funds to seamlessly flow from digital wallets (or stablecoins) into investment products like ETFs. This will greatly reduce friction and transaction costs, facilitating freer capital movement. He mentioned that there is already $4.1 trillion in global digital wallets (primarily stablecoins), but if one wants to invest in bonds, stocks, or real estate, they still need to transfer funds to traditional wallets, a cumbersome and costly process. Tokenization can resolve this issue by enabling all investment operations through a single application, truly achieving investment democratization and convenience.

Brian Armstrong agreed and believed this would disrupt existing interest patterns. When the host asked if this meant shorting credit card companies, Armstrong pointed out that it essentially involves "the digitization of the dollar." He predicted that banks, initially resistant to stablecoins due to fears of deposit flight, will eventually have to embrace it. "The best banks see this as an opportunity, while the resistant ones will be eliminated."

Fink expressed urgency: "As a nation, we are falling behind." He named India and Brazil, noting that these countries are undergoing a comprehensive transformation towards a digital economy, including currency digitization and payment system innovations (like Brazil's PIX). One of the cornerstones of America's success is its capital markets, but actions are not happening quickly enough. "We need to move faster, not only on AI but also on digitization and tokenization; otherwise, other countries will surpass us."

Regarding the new trend of "tokenizing private companies" (i.e., selling fragmented private equity to the public without the company's approval), Armstrong acknowledged awareness but held a cautious stance. He believes that attempts without company consent often fail. His greater concern is the macro picture: companies are staying private for longer, there is huge demand for private capital, and the crypto space is flush with funds. Coinbase is investing heavily to explore how to "update capital formation" using crypto technology, but emphasized that it must be done with company authorization.

When asked whether Coinbase and BlackRock are competitors, Armstrong denied it, emphasizing that the two are partners. Coinbase provides custody and trading services for over 80% of crypto ETFs on the market. As institutions like BlackRock advance fund tokenization, Coinbase hopes to become a leader in asset tokenization while promoting BlackRock's products to its customers. "We will work together very well," Armstrong concluded.

AI, Economy, and Prediction Markets: A Technology-Driven Future Vision

The topic turned to AI. When asked if there is an AI bubble, Larry Fink relayed conversations with CEOs of several large-scale cloud computing companies: they are uncertain if investments are currently excessive or insufficient, but they are certain that there is a "shortage of computing power," with demand far exceeding supply. While the construction cycles may not meet investment return expectations, the demand is real. He believes the capitalist market will yield huge winners and losers, forming a "K-shaped economy." He posed a question to politicians: "Does this mean we will have 5 to 10 companies with a trillion-dollar market value? What does this mean for society? How do we ensure economic inclusivity?"

Fink brought the conversation back to real economic data, pointing out a critical contradiction: the job market in 2025 is abnormally weak (with monthly job additions plummeting from last year’s 154,000 to 31,000). The underlying factor might be that policy uncertainty is suppressing hiring, or it could be that technology (AI) is beginning to replace labor— the latter will be deflationary and have a profound impact on society. He leans towards a combination of both, but technology trends are particularly apparent. "Leaders in every industry are capturing increasingly larger shares; the K-shaped economy is forming in every sector." He cited BlackRock as an example: revenue grew by 40%, while the number of employees increased by only 5%, and profit margins improved by about 300 basis points. Technology is profoundly changing the economic structure, while the biggest challenge lies in higher education systems—it is built on the foundation of white-collar jobs, which are being reshaped by technology. "We need to answer these questions, but I haven't heard many asking them," Fink warned.

The dialogue concluded with a "viral" moment from Brian Armstrong. He read out loud the words users on the prediction market platform Polymarket bet he would say (such as "Bitcoin," "Ethereum"), poking fun at this predicting behavior. However, he seriously pointed out that prediction markets are significant: they are trading assets for 1% of people and an alternative medium for obtaining world information for 99% of people, even a form of entertainment. He proposed a disruptive idea: policymakers could utilize prediction markets to test the impact of different policies on GDP or unemployment rates, thereby gaining market signals to guide decision-making.

Regarding the potential issue of market manipulation, Armstrong posed an ethical dilemma: if the goal is to provide high-quality signals about global events to 99% of people (like whether the Suez Canal will reopen), then maybe "insider trading" should be allowed, enabling those with key information (like admirals on the canal) to trade, thus providing more accurate signals. However, maintaining market integrity should not permit this. This is not a black-and-white issue. In response, Fink calmly stated that he focuses on helping clients plan for long-term outcomes over 30 years rather than predicting what will happen next. "That’s not my way of life," he summed up.

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。