BlackRock offers crypto to investors via latest partnership with Coinbase
BlackRock, the world’s largest money manager, has entered into a partnership with the crypto exchange Coinbase on Thursday. BlackRock will now be able to offer institutional clients access to cryptocurrency trading along with custody services.
This is positive news amid negative sentiment spread across the industry, the crypto slump has forced investors to dump their assets due to an expected recession. Despite significant layoffs, BlackRock’s partnership has managed to help investors regain confidence in the digital asset industry.
The institutional clients of the renowned investment management company that own digital assets will be able to get help from Aladdin, which is the asset manager’s suite of software tools to manage their investment portfolios along with conducting risk analysis on those decisions.
Joseph Chalom, Global Head of Strategic Ecosystem Partnerships at BlackRock mentioned,
Our institutional clients are increasingly interested in gaining exposure to digital asset markets and are focused on how to effectively manage the operational lifecycle of these assets. This connection with Aladdin will allow clients to manage their bitcoin exposures directly within their existing portfolio management and trade flows for a whole portfolio view of risk across asset classes.
BlackRock teased an opportunity to offer crypto access to investors
BlackRock has previously mentioned that it was looking forward to an integration that would help investors access digital assets. CEO Larry Fink stated that the organization was exploring different ways to offer crypto services to its valued clients, suggesting that clients expressed continued interest in the cryptocurrency market.
Coinbase has been no exception when it comes to facing the aftermath of the crypto carnage, witnessing tough competition and regulatory issues as well. This partnership could help Coinbase and help the company go on a path to recovery. The increased institutional inflow could prove to be beneficial for the crypto exchange.
Coinbase President Emilie Choi, stated in one of his emails that,
BlackRock’s deep expertise in investment management technology, combined with Coinbase’s integrated and secure trading, custody and prime brokerage product suite, will facilitate greater institutional access and transparency to digital asset investing.
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Bitcoin acquired will remain in Coinbase Custody Trust Company
Coinbase Custody reserves the right to hold the assets on behalf of its customers in cold storage with an insurance of up to $320 million. Bitcoin acquired through the partnership shall be held in the custody of the Coinbase Custody Trust Company.
It is a regulated trustee in New York. Users of Coinbase Prime are allowed to transfer funds between wallets and this can be done internally.
This also means that transferring Bitcoin from the platform is not an option at the moment. BlackRock currently serves more than 1,600 institutions in the United Nations and Canada.
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Featured image from GOBankingRates, chart from TradingView.com
