After years of resistance, the world’s largest asset manager has finally taken a serious dive into crypto. BlackRock, which controls $10 trillion in assets, is partnering with publicly traded Coinbase to provide its institutional clients with access to cryptocurrencies.
Bitcoin is the first digital asset offered under the partnership. blog post Coinbase, the most popular cryptocurrency exchange in the US, published a post today about this. BlackRock’s Aladdin investment management platform will offer a connection to Coinbase Prime to offer general customers crypto trading, custody, prime brokerage and reporting capabilities.
“Regular clients of Aladdin and Coinbase will be able to manage their bitcoin exposure along with their public and private investments for a complete view of portfolio risk,” BlackRock said in a statement.
The news marks a major change for BlackRock, whose chairman Larry Fink called bitcoin a “money laundering index” five years ago. Since then, the asset management firm has made small strides in web3 by introducing bitcoin futures trading on its platform and in a couple of your funds last year. Fink told shareholders in a letter this March that BlackRock is looking into “digital currencies, stablecoins and the underlying technologies” to see how they can help the firm serve its customers.
Today, Coinbase Prime has 13,000 institutional clients using its suite of tools, according to the company. It remains unclear when the companies plan to add other cryptocurrency offerings beyond Bitcoin to the platform.
This is a big day for Coinbase. Meta CEO Mark Zuckerberg also announced today that his company has added Coinbase wallet integration, among other third-party crypto wallets, to the Instagram platform. Coinbase shares are up more than 17% as of 11:00 am EST today, and are also up more than 70% over the past month, showing that the company has started to recover from the lows it hit in May, when the crypto market pullback reached bottom. .
The unfavorable conditions in the cryptocurrency market seem to have hit the exchange particularly hard as it announced it will be shutting down. recruitment freeze and series of layoffs this summer, the latter of which accounted for 18% of employees at the time. Its competitors reacted differently to the “crypto winter” – Gemini was executed two rounds of layoffs in recent months, while Binance.US actively recruiting new employees.
Credit: techcrunch.com /