Coinbase and BlackRock collaborates to offer crypto to institutional investors

In a blog post published on Thursday, the cryptocurrency exchange Coinbase revealed a partnership with BlackRock, the largest asset management in the world, to offer its customers direct access to cryptocurrencies, beginning with the most popular cryptocurrency, Bitcoin.

Customers of BlackRock's Aladdin institutional investment management platform will have access to Coinbase Prime, an institutional trading solution that offers trading, custody, prime financing, staking, data, and reporting services on over 300 digital assets, if they sign up for it. Using Coinbase Prime, which is designed for institutions like hedge funds, asset collectors, financial institutions, and corporate treasuries and serves 13,000 customers, BlackRock, which manages about $9 trillion in customer money, will offer the service. Back in January, BlackRock's CEO Larry Find dropped a hint that the asset management giant was considering getting into cryptocurrency trading. At the time, he remarked on the increasing need for cryptocurrency publicity. BlackRock's global head of strategic ecosystem relationships, Joseph Chalom, commented on the news, noting that the firm's customers are more curious about gaining exposure to cryptocurrencies.

Many of our institutional customers are thinking about expanding their portfolios to include digital assets, and they are concerned about the best practices for managing the whole digital asset lifetime. As a result of this integration with Aladdin, customers can take control of their bitcoin exposures without having to change their current portfolio management or trading processes, giving them a holistic picture of their portfolio's exposure to risk across asset classes.

Institutional investors may use Coinbase Prime to access cryptocurrency-related products including ETFs, custodial solutions, and brokerage services through a user interface or as an integrated platform using APIs. They may now “handle their bitcoin exposures directly in their existing portfolio management and trading processes” thanks to the cooperation.

Coinbase has recently been the target of criticism from a wide range of quarters. A former product manager was arrested last month on allegations of insider trading, and the SEC is also looking into whether the exchange let customers to trade unregistered securities.

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