BlackRock Offers Crypto to Investors Through Latest Partnership with Coinbase

BlackRock, the world’s largest money manager, partnered with cryptocurrency 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 sweeping across the industry, the cryptocurrency downturn has forced investors to dump their assets due to an anticipated downturn. Despite sizable layoffs, BlackRock’s partnership has managed to help investors regain confidence in the digital asset industry.

Institutional clients of the renowned investment management firm who own digital assets will be able to get help from Aladdin, which is the wealth of asset manager software tools to manage their investment portfolios and perform risk analysis on these 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 efficiently manage the operational life cycle of these assets. This connectivity to Aladdin will enable clients to manage their bitcoin exposures directly within their existing portfolio management and trading workflows for a complete view of portfolio risk across asset classes.

BlackRock Teased Possibility of Offering Crypto Access to Investors

BlackRock previously mentioned that it was hoping for an integration that would help investors gain access to digital assets. CEO Larry Fink stated that the organization was exploring different ways to offer crypto services to its valued customers, hinting that customers expressed sustained interest in the cryptocurrency market.

Coinbase has been no exception in terms of dealing with the aftermath of the crypto bloodbath, witnessing stiff competition as well as regulatory issues. This partnership could help Coinbase and help the company walk the path of recovery. Increased institutional inflows could prove beneficial for the crypto exchange.

Coinbase president Emilie Choi stated in one of her emails that,

BlackRock’s deep expertise in investment management technology, combined with Coinbase’s suite of integrated and secure trading, custody and prime brokerage products, will facilitate greater institutional access and transparency to investing in digital assets.

Related Reading | Quant Suggests Tesla’s Bitcoin Dump Is Behind Coinbase’s Recent Red Premium

Acquired Bitcoin Will Remain in Coinbase Custody Trust Company

Coinbase Custody reserves the right to hold assets on behalf of its clients in cold storage with insurance up to $320 million. Bitcoin acquired through the partnership will be held in the custody of the Coinbase Custody Trust Company.

It is a regulated fiduciary in New York. Coinbase Prime users can transfer funds between wallets and this can be done internally.

This also means that transferring Bitcoin from the platform is not an option at this time. BlackRock currently serves more than 1,600 institutions in the United Nations and Canada.

Related Reading | Crypto Exchange ZB.com Reportedly Loses $4.8 Million to Hackers – Here’s What We Know

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Bitcoin was priced at $22,800 on the four-hour chart | Source: BTCUSD on TradingView
Featured image from GOBankingRates, chart from TradingView.com

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