US-based multinational investment company Blackrock has partnered with Coinbase to provide its institutional clients with seamless access to crypto asset trading. Blackrock is one of the largest financial institutions and has around $10 trillion in assets under management (AUM).
Blackrock will now integrate Coinbase Prime into its premium asset management platform ALADDIN (Asset, Liability, Debt and Derivatives Investment Network). Coinbase Prime will provide advanced agency trading, custody, prime funding, 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 operating life cycle of these assets. This connectivity with Aladdin will enable clients to manage their Bitcoin exposures directly within their existing portfolio management and trading workflows for a complete view of portfolio risk across asset classes.”
Shares of Coinbase (COIN) soared more than 10 percent after the deal with Blackrock and the announcement of Instagram’s integration with the Coinbase wallet by Meta CEO Mark Zuckerberg.
The Coinbase Prime integration will give institutional investors the option to seamlessly trade cryptocurrencies based on insights and data. This is also a relief for the cryptocurrency market as it has been steadily falling from its all-time high last November and is continually battling with financial authorities as they tighten their grip on cryptocurrencies. The $1 trillion crypto industry is highly unregulated, and since the funds stored by the public on these platforms are not insured by the government, and if these platforms go bankrupt or the market crashes, investors will lose a lot of money.
Rick Rieder, Blackrock’s global fixed income chief investment officer (CIO), stated in mid-June that cryptocurrencies, like Bitcoin (BTC), are durable assets. Blackrock had also introduced a Blockchain exchange-traded fund (ETF) in April, and in the same month, it was declared “lead asset manager of USDC cash reserves.”
“Blackrock and Coinbase will continue to progress the integration of the platform and roll out the functionality in phases to interested customers,” Coinbase director Brett Tejpaul and Coinbase vice president of institutional product Greg Tusar wrote in a blog on Thursday.
By the way, Meta CEO Mark Zuckerberg also announced that Meta will integrate the Instagram platform with the Coinbase wallet. Meta has implemented this feature in more than 100 countries as of now.
The Aladdin Digital platform is a platform widely used by institutional investors, such as banks, insurance and asset managers. Aladdin provides risk assessment and access to a wide variety of data, which investors can use to make decisions.