US-based multi-national Investment company, Blackrock, has partnered with Coinbase to provide its institutional clients with seamless access to trading in crypto assets. Blackrock is one of the biggest financial institutions and has around $10 trillion dollar worth of assets under management (AUM).
Blackrock will now integrate Coinbase Prime into its premium asset management platform ALADDIN (Assets, Liability, Debt and Derivative Investment Network). Coinbase prime will provide advanced agency trading, custody, prime financing, staking, and staking infrastructure, data, and reporting, among others.
Joseph Chalom, global head of strategic ecosystem partnerships at BlackRock said of the development: “Our institutional clients are increasingly interested in gaining exposure to 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.”
Coinbase (COIN) stock soared over 10 per cent after the deal with Blackrock and the announcement of the Instagram integration with the Coinbase wallet by Meta CEO Mark Zuckerberg.
The integration of Coinbase prime will provide the institutional investors the option of seamless crypto trading based on insights and data. This also comes as a relief for the crypto market, as it has been on a constant slide since its all-time high of last November and is continuously struggling with financial authorities, as they are tighten their grip on crypto. The 1 trillion dollar crypto industry is highly unregulated, and given that the funds stored by the public in these platform are not insured by the government, and if these platform go bust or the market crashes, then investors will lose a lot of money.
Rick Rieder, chief investment officer (CIO) of global fixed income at Blackrock had stated in mid-June that cryptocurrencies, such as Bitcoin (BTC) are durable assets. Blackrock had also introduced a Blockchain exchange-traded fund (ETF) in April, and the same month, it was declared “a primary asset manager of USDC cash reserves.”
“Blackrock and Coinbase will continue to progress the platform integration and will roll out functionality in phases to interested clients,” Brett Tejpaul, head of Coinbase, and Greg Tusar, vice president, institutional product, Coinbase wrote in blog on Thursday.
Incidentally, Meta CEO Mark Zuckerberg has also announced that Meta will integrate the Instagram platform with Coinbase’s wallet. Meta has rolled this feature in over 100 countries as of now.
Aladdin Digital platform is a widely used platform by institutional investors, such as banks, insurance and asset managers. Aladdin provides risk assessment and access to a wide variety of data, which the investors can use to make decisions.
