Using Coinbase Prime, BlackRock’s institutional investors would be able to conduct cryptocurrency transactions.
Coinbase has launched a new cooperation with BlackRock to offer institutional customers direct crypto services through Aladin, the asset manager’s end-to-end investment management platform.
According to the statement made on August 4, the services will also include crypto trading, custody, prime brokerage, and reporting tools.
BlackRock’s worldwide head of strategic ecosystem relationships, Joseph Chalom, stated: “Our institutional customers are increasingly interested in acquiring exposure to digital asset markets and are focused on managing the operational lifetime of these assets in an effective manner. This integration with Aladdin will enable customers to manage their bitcoin exposures directly inside their current portfolio management and trading processes, providing a holistic picture of portfolio risk across asset classes.”
BlackRock’s CEO Larry Fink said in March that the asset management was examining ways to service customers with digital currencies, noting rising interest in the sector.
The announcement was made at a time when the cryptocurrency sector is in the process of rebounding from a collapse that sent the value of Bitcoin (BTC) and other digital assets to all-time lows. In addition to this, it comes at a time when Coinbase is being subjected to a heightened level of regulatory scrutiny about its listings.
During this time, investors have shown a favourable reaction to the news, sending Coinbase’s share price soaring by as much as 40 percent to a high of $116. Nonetheless, it had dropped to $93.81 as of the article’s publication.