BlackRock, the largest asset manager in the world, has entered into a partnership with the crypto exchange platform Coinbase. The partnership was announced via a blog published on Medium.
As per the announcement, Coinbase will provide direct access to crypto assets to institutional clients of Aladdin. Aladdin is BlackRock’s end-to-end investment management platform. Nonetheless, the initial access will be limited to Bitcoin (BTC). Additionally, access will be provided via Coinbase Prime.
Moreover, the connectivity with Aladdin will allow clients to directly manage their Bitcoin (BTC) exposure. According to Joseph Chalom, Global Head of Strategic Ecosystem Partnerships at BlackRock, client interest in digital assets has been growing. BlackRock’s institutional clients are “focused on how to efficiently manage the operational lifecycle of these assets.”
Some relief for the crypto exchange?
The partnership announcement comes months after BlackRock CEO Larry Fink said that the firm would explore ways to provide crypto assets to its clients.
BlackRock has nearly $10 trillion worth of assets under its management. It is by far the largest asset management firm in the world. The company provides a range of funds and portfolios that invest in things like fixed income, money market instruments, and equity.
On the other hand, Coinbase is one of the largest crypto exchanges in the world. However, the popular exchange is currently under the SEC’s radar for listing unregistered securities. Additionally, there are accusations of insider trading against the exchange. Due to the sharp decline in cryptocurrency values, fierce competition, and a recent regulatory shock, Coinbase has had a difficult year. Bringing in more institutional capital may be the key to its revival and a larger upturn for the digital asset sector as a whole.
Nonetheless, the world’s largest asset management firm probably feels there is nothing to worry about. As per the partnership announcement blog,
“BlackRock and Coinbase will continue to progress the platform integration and will roll out functionality in phases to interested clients. Access is available for institutions contracted with both Aladdin and Coinbase.”