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The move comes after BlackRock launched its own crypto-themed exchange-traded fund in April.
BlackRock partners with Coinbase
Coinbase has signed a new deal with the world’s largest asset manager, BlackRock.
In a Thursday blog post, the US-based crypto exchange announced that it has partnered with BlackRock to provide the asset manager’s clients with a range of crypto services. Through Coinbase Prime, the exchange’s institutional crypto investment platform, BlackRock’s “Aladdin” clients will have access to crypto trading, custody, prime brokerage and reporting capabilities in line with BlackRock’s own institutional clients. Coinbase.
Customers of Aladdin, BlackRock’s end-to-end investment management platform, will now have direct access to Bitcoin through connectivity with Coinbase Prime. Commenting on the development, Head of Strategic Partnerships for BlackRock’s ecosystem, Joseph Chalom, said:
“This connectivity with Aladdin will allow clients to manage their bitcoin exposures directly within their existing portfolio management and trading workflows for a holistic portfolio view of risk across all asset classes.”
Although the partnership between BlackRock and Coinbase is important for traditional financial institutions and the crypto industry, it comes as no surprise. In February, rumors surfaced that the asset manager planned to give its institutional clients the ability to trade cryptocurrencies. Company CEO Larry Fink also previously stated that he is “fascinated” by Bitcoin and that the cryptocurrency has the potential to evolve into a “great asset class”.
More recently, BlackRock spear a new exchange-traded fund with a particular focus on blockchain technology, cryptocurrency and technology companies. The ETF has an 11.45% allocation to Coinbase.
Coinbase stock appears to be reacting favorably to the news. After suffering a substantial decline throughout the first half of the year, shares of the major US crypto exchange have rallied in line with the rest of the US stock market over the past week. COIN is already up over 7% in premarket trading.