BlackRock Partners With Coinbase To Offer Crypto To Institutional Investors
Bitcoin will be the first digital asset to be offered to Blackrock’s clients.
BlackRock, the largest asset manager in the world with more than $8T in assets under management, has partnered up with Coinbase to offer cryptocurrency services to its clients.
Bitcoin will be the first digital asset to be offered to clients of Aladdin, BlackRock’s end-to-end investment management platform. Additionally, clients of both Coinbase Prime and BlackRock’s Aladdin will have access to 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 efficiently manage the operational lifecycle of these assets,” stated Joseph Chalom, BlackRock’s Global Head of Strategic Ecosystem Partnerships.
The partnership comes four months after BlackRock CEO Larry Fink indicated the company’s interest in digital assets in a letter to shareholders.
Coinbase stock surged higher in the wake of the news.
COIN hit an intraday high of $108.59 on Aug.4 but has cooled off since then, and is trading around $90 at the time of writing. The stock is up 110% from its June lows.
Three ETFs of Cathie Wood’s Ark Invest sold nearly 1.42 million shares of COIN on July 26 at an average price of $53. These shares were bought for $254.65 on average, resulting in a loss of 80%.
Coinbase has been making the headlines for all the wrong reasons recently.
The US Justice Department charged a former Coinbase employee, Ishan Wahi, along with two associates for insider trading. Wahi has since pleaded not guilty.
Meanwhile, Coinbase is reportedly being probed by The U.S. Securities and Exchange Commission over potentially having listed unregistered securities. According to the report, the probe into Coinbase predates the insider trading incident.
Tarang Khaitan discovered crypto in 2017 and has been actively involved in the space since. In his spare time, he likes to find new dApps being built in the Web3 space.