In an effort to facilitate institutional investors to trade and manage Bitcoin, BlackRock Investment Management Corporation has partnered with Coinbase. Founded in 1988, BlackRock claims to be the largest asset manager in the world with $10 trillion (approximately Rs. 7,91,89,500 crore) of assets under management as of January this year. While BlackRock aims to target giant BTC investors, BlackRock’s entry into the cryptosphere comes at a time when the industry is being riddled with fund collapses and government investigations around the world.
For Coinbase, this partnership seemed to bring relief after struggling for months against the backdrop of the industry slowdown. After laying off 18 percent of its staff, Coinbase closed the curtain on its “Pro” service and was under investigation by US authorities for securities violations.
“Our institutional clients are increasingly interested in gaining exposure to digital asset markets and are focused on efficiently managing the operational lifecycle of these assets. This connectivity to Aladdin allows clients to manage their Bitcoin exposures directly into their existing portfolio management and trading workflows for a complete portfolio view of risk across asset classes,” said Joseph Chalom, Global Head of Strategic Ecosystem Partnerships at BlackRock in a blog post.
Coinbase shares have surged 15 percent since the announcement of its partnership with BlackRock surfaced.
We are proud to announce a partnership with @black rock. BlackRock’s Aladdin customers now have direct access to crypto markets through Coinbase Prime.
Read more :point_down:https://t.co/LA3XeYYbvs
— Coinbase (@coinbase) August 4, 2022
BlackRock clients can use the Aladdin investment management system to monitor their Bitcoin exposure and facilitate financing and trading on Coinbase.
“BlackRock’s end-to-end investment management platform, providing instant access to crypto, starting with Bitcoin, through connectivity to Coinbase Prime. Coinbase Prime will provide crypto trading, custody, prime brokerage and reporting capabilities to Aladdin’s institutional client base, who are also Coinbase clients,” the post added.
The regulatory risks of the BlackRock-Coinbase partnership are manageable because it starts with Bitcoin, which has a clearer regulatory status in Washington than other virtual digital assets, a Bloomberg report explained.