Crypto exchange Coinbase has partnered with BlackRock, the world’s largest asset manager, to provide institutional users of its Aladdin platform access to crypto through Coinbase Prime.
Connecting the two systems will give BlackRock’s institutional clients – who manage $20 trillion in total – access to Coinbase’s trading, custody, leading brokerage and reporting services. Initially, this would include access to bitcoin.
This is a huge development for the crypto exchange in a time of turmoil: the company shut down 18% of its workforce To prepare for the expectation of it”extended guideline“Crypto Winter. Its shares (COIN) are down 60% this year, but climbed 22% Thursday morning on the BlackRock news.
Coinbase has listed over 200 coins and saw $1.6 billion in trading volume during the past day, according to CoinMarketCap, According to Brett Tezpaul, head of Coinbase Institutional, Coinbase’s institutional clients account for 70% of that volume.
“Coinbase’s strategy is to provide a single point of entry into the market so that it can do everything one would want to do with crypto: buy, sell, store, stake, and so on,” he said. decrypt On a call Thursday morning. “Partnering with Aladdin which uses $20 trillion of capital for crypto is a huge game changer, I think, for Coinbase and the industry.”
that interest from institutions Hasn’t dwindled in the face of rough marketsOr so, he said.
“It literally takes years for these slow-moving giants to think about a digital asset, cryptocurrency,” Tejpaul said of the institutional due diligence process. “The bullish going for them will be a year to 18 months. So it is nice to see that with a very volatile backdrop for all markets, not just cryptocurrency, institutions continue to onboard.”
BlackRock said in a press release that the partnership means that its clients will be able to track their crypto investments along with the rest of their portfolio.
Joseph Chalom, Global Head of Strategic Ecosystem Partnerships, BlackRock, said in the release, “This connectivity with Aladdin will allow clients to directly manage their bitcoin exposure for their existing portfolio management and a full portfolio view of risks across asset classes. “
This is not the first time this year that BlackRock has announced crypto news.
In April, $10 trillion asset manager Listed iShares Blockchain and Tech ETFWhich gives investors exposure to blockchain technology without having to invest directly in digital assets.
At the time, COIN shares made up 11.45% of the ETF’s portfolio. It has since increased to 13.27%. iShares ETFWhich trades on the New York Stock Exchange Arca under the ticker IBLC, has $6.7 million under management.
Meanwhile, Coinbase started derivatives trading in late June, and now Offers a “nano” bitcoin futures trading contract (which can be bought in denominations equal to 1/100th bitcoin). The contract is available through third party retail brokers.
meeting was made possible FairX’s acquisition of Coinbase, which is already regulated by the Commodity Futures Trading Commission. it is likewise that FTX has entered the US derivatives market LedgerX acquisition and with the acquisition of Crypto.com, a North American derivatives exchange.
Nevertheless, Coinbase still has a Futures Commission merchant application pending with the National Futures Association.
“We are following our FCM and then we hope that at one point in the future, you will be able to access both spot and futures on the same platform,” Tejpaul said. The company still has an application pending with the National Futures Association which, if approved, would grant it its Futures Commission merchant license.