Asset management giant black rock (NASDAQ: noir) announced on August 4 that it had partnered with Coinbase Global (NASDAQ: PIECE OF MONEY). The partnership is limited to bitcoins and will allow the firm’s institutional clients to have access to crypto trading, custody, prime brokerage and reporting via Coinbase Prime. Customers will also be able to manage their bitcoin and perform risk analysis using BlackRock’s Aladdin software suite. Following the news, Coinbase stock jumped 16%.
Key points to remember
- BlackRock and Coinbase Global announce a partnership, which is currently limited to bitcoin.
- More crypto assets may be added in the future.
- Customers will be able to manage and perform risk analysis of their bitcoin holdings through BlackRock’s Aladdin software suite.
Through this partnership, customers can access Coinbase Prime, the exchange’s institutional platform, which offers a wide range of features and tools. The platform recently enabled establishments to start staking Ether on the platform.
BlackRock has over $10 trillion in assets under management (AUM) and is one of the notable names in the financial world. Rumors have long swirled that it would enter the cryptocurrency market, with reports earlier in the year saying it would allow trading through Aladdin. The rumors seem to come true.
BlackRock has had some involvement in the crypto space in the past. He owns 16.3% of MicroStrategy and launched a blockchain industry ETF. A former BlackRock executive also said bitcoin would be part of everyone’s wallet.
Joseph Chalom, global head of ecosystem strategic partnerships at BlackRock, said clients are focusing more on this new asset class. “Our institutional clients are increasingly interested in exposure to digital asset markets and focused on how to effectively manage the operational lifecycle of these assets,” he said.
Coinbase, which had a difficult few weeks due to the Securities and Exchange Commission survey, was carried out by the partnership. The SEC has been watching the exchange’s cryptocurrency listings for a long time.