BlackRock Offers Institutional Investors Cryptocurrency Access Through Coinbase
BlackRock is now offering cryptocurrencies to its institutional clients through Coinbase Prime.
Currently, the new service only includes bitcoins, and it is planned to adjust the offer in the future depending on demand.
Investment firm BlackRock has announced that it will be offering cryptocurrencies to institutional investors in the future. Accordingly, the asset manager has partnered with crypto exchange Coinbase to provide investors with access through Coinbase Prime. Coinbase Prime is an integrated trading solution specifically designed for institutional investors.
Access to BlackRock Portfolio Management
BlackRock institutional clients holding cryptocurrencies on Coinbase have access to Aladdin, the portfolio management software for asset managers. Mutual clients can also enjoy crypto trading, prime brokerage, custody and reporting features.
The partnership between BlackRock and Coinbase currently only includes Bitcoin . However, a company spokeswoman said the asset manager will expand its offering to other digital assets based on customer requests. Joseph Chalom, Global Head of Strategic Ecosystem Partnerships at BlackRock, issued a statement about the new service:
“Our institutional clients are increasingly interested in entering the digital asset markets and are focused on how to effectively manage the operational lifecycle of these assets. Linking with Aladdin allows our clients to manage their bitcoin exposure directly within their existing portfolio management and trading workflows to gain an overall view of portfolio risk across asset classes.”
The head of the company, Larry Fink , hinted at this a few months ago. In a letter to shareholders in March of this year, he wrote that he was exploring ways to provide crypto services to customers.
“With growing interest from our customers, BlackRock is exploring digital currencies, stablecoins, and the technologies behind them to evaluate how they can help us serve our customers.”
Fink added that a well-designed global digital payment system could speed up the settlement of international transactions. Fink also said he would lower the cost of such services. This optimism was not always present.
Back in 2021, he said in an interview with CNBC on Squawk Box that consumer demand for digital assets is very low.
Coinbase, on the other hand, has been on a rollercoaster ride this year amid a highly volatile cryptocurrency market. The crypto exchange has lost 19.4% in the last three months. A partnership with BlackRock could change that trend. Exchange President Emily Choi said in a statement:
“The company’s deep expertise in investment management technologies, combined with Coinbase ’s integrated and secure suite of trading, custody, and core coverage products, will facilitate institutional access and transparency when investing in digital assets.”