This article briefly:
BlackRock continues its aggressive expansion in Asia with a joint venture with Jio Financial Services.
The new venture will provide investment opportunities to India’s 1.4 billion people.
But BlackRock’s recent track record has not been without controversy or fear, uncertainty and doubt (FUD).
BlackRock has formed a joint venture with India’s Jio Financial Services as it continues its aggressive global expansion. The two companies will initially invest $150 million each in their new platform, which will provide investment services.
BlackRock is seeking to capitalize on the growing popularity of digital assets in India, the Financial Times reported on Wednesday. BlackRock recently applied for approval of a spot Bitcoin ETF, an ambition few other asset managers can match in this area of the market.
BlackRock and Jio partnership
Jio is owned by tycoon and billionaire Mukesh Ambani, and the Financial Times reported that the company may have been looking for a new partner since it broke away from another of Ambani’s joint ventures, Reliance Industries.
But whatever Jio’s motivations, the move cannot fail to impress many as the latest step in BlackRock’s plans to grow across Asia and around the world.
Just last Monday, news broke that BlackRock had appointed two senior executives to spearhead its expansion in China and Singapore.
Mandy Lui becomes Head of Wealth for Greater China, covering Hong Kong, Taiwan and Mainland China. Dennis Quag becomes Head of Wealth for Singapore. These appointments help solidify our global dominance, underpinned in large part by our active presence in 36 countries and counting.
BlackRock has teamed up with Jio Financial Services to enter the booming cryptocurrency market, the Financial Times reported on Wednesday afternoon.
Is BlackRock committed to responsible investing?
Just last week, BlackRock announced Saudi oil executive Amin Nasser as the newest member of its board of directors.
As head of Saudi Aramco, Nasser wields enormous influence in an industry blamed for destroying much of the world's natural environment.
As a result, many journals and websites have offered scathing comments about his joining the board of a company whose CEO, Larry Fink, allegedly advocates for socially conscious investing.
A headline in Business Insider summed up the reaction of many: "BlackRock may not be 'woke' anymore after the asset manager adds an oil CEO to its board."
The Business Insider report further commented:
“BlackRock’s decision on Monday to appoint Saudi Aramco CEO Amin Nasser to its board provides further ammunition to these critics, suggesting the company may not be as socially conscious as it says it is.”
The controversy, along with recent scandals and legal troubles, could undermine the prestige BlackRock hoped to gain from its latest cross-border alliance.
If the asset manager receives approval from the U.S. Securities and Exchange Commission in the coming weeks or months, as many expect, the marketing of its spot Bitcoin ETF may also become more complicated.
