BlackRock is interested, according to reports, in developing a native L2 protocol compatible with Ethereum. Asset management company BlackRock has been investing in multiple top crypto currencies over the last year. These include Bitcoin and Ethereum. The firm is now aiming to increase tokenization and set expectations for the launch of a native network.
BlackRock used Ethereum’s chain, and did not discuss other L1 options. The company can produce an L2 private chain anytime, however, it will not be connected directly to any other assets.
BlackRock will likely be motivated to build a Layer-2 network by its success with ETFs. With the L2 there are some obstacles.
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BlackRock’s L2 Network: How hard would it be to launch?
BlackRock owns Circle, and has access to USDC Tokens – one of the world’s most popular stablecoins. TokenTerminal analysts believe that the asset manager is ready to launch a chain, which could be a protocol without tokens similar to Base.
The regulations surrounding the use of a blockchain would pose the greatest challenge to BlackRock. In order to build a L2 blockchain compatible with Ethereum the company would have to pay gas charges. Bridges are also needed to move between Ethereum and L2, which is one of the most vulnerable spots.
Overall, BlackRock is a large firm that could launch its own own L2, while it may not be able to handle all challenges, can certainly manage most.
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Source: watcher.guru