Why Does BlackRock Provide Crypto To Institutional Investors via Coinbase Prime?

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Coinbase Prime

BlackRock, the largest asset management in the world, has entered into a relationship with Coinbase Prime (COIN), the world’s largest publicly listed cryptocurrency exchange, in order to make cryptocurrency directly accessible to institutional investors.

According to a post on Coinbase’s blog that was published on Thursday, mutual users of Coinbase and BlackRock’s investment management platform, ‘Aladdin’, will have access to cryptocurrency trading, custody, prime brokerage, and reporting features.

Additionally a note published on Thursday by Oppenheimer, BlackRock had $8.5 trillion in assets under management as of the second quarter of 2022. Whereas Aladdin had more than 200 institutional users, including insurers, pensions, corporations, asset managers, banks, and official institutions.

BlackRock also managed $8.5 trillion in assets.

Shares of BlackRock went up a little bit to $693.11, while shares of Coinbase went up a lot. This is because of the news that the price of cryptocurrencies is falling sharply.

In the blog post, BlackRock’s global head of strategic ecosystem partnerships, Joseph Chalom, said, “Our institutional clients are becoming more interested in getting into digital asset markets and are focused on how to efficiently manage the operational lifecycle of these assets.”

“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 risk across asset classes,” he said.

Access to give through Coinbase Prime, which is an integrated trading platform for institutional investors in cryptocurrencies that is already in place. The blog post said that the companies will keep working on integrating the platform and roll out different functions over time.

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