BlackRock Collaborates with Coinbase to offer cryptocurrency to institutional investors

BlackRock and Coinbase have teamed up to offer cryptocurrency services to their clients. BlackRock is the biggest asset manager in the world, with more than $8T in assets under management.

Bitcoin will be the first digital asset available to Aladdin clients; BlackRock’s end-to-end investment management platform. Furthermore, Coinbase Prime and BlackRock’s Aladdin clients will access crypto trading, custodial services, prime brokerage, and other reporting capabilities.

“Our institutional clients are increasingly interested in gaining exposure to digital asset markets and are focused on how to manage the operational lifecycle of these assets efficiently,” stated Joseph Chalom, BlackRock’s Global Head of Strategic Ecosystem Partnerships.

BlackRock said in a press release that the partnership means its clients will be able to track their crypto investments alongside the rest of their portfolios.

“This connectivity with Aladdin will allow clients to manage their Bitcoin exposures directly in their existing portfolio management and trading workflows for a whole portfolio view of risks across asset classes,” Joseph Chalom, BlackRock’s global head of strategic ecosystem partnership, said in the release.

The partnership comes four months after BlackRock CEO Larry Fink indicated the company’s interest in digital assets in a letter to shareholders.

The news marks a significant shift for BlackRock, whose chairman Larry Fink called bitcoin an “index of money laundering” five years ago. Since then, the asset management firm has made small advances into web3, introducing bitcoin futures trading to its platform and to a couple of its funds last year. Fink told shareholders in a letter in March this year that BlackRock was studying “digital currencies, stablecoins and the underlying technologies” to see how they could help the firm serve its clients.

COIN Soars

The stock of Coinbase rose as a result of the news.

COIN reached an intraday high of $108.59 on August 4, but has since dropped to around $97. The stock is up 110 per cent since its lows in June.