BlackRock, the globe’s largest asset manager, has teamed up Coinbase will provide institutional investors with access points to crypto via a new partnership.
Through the strategic partnership, BlackRock’s Aladdin will be connected with Coinbase Prime to provide institutional investors with direct and seamless access to crypto, beginning with Bitcoin (BTC).
Joseph Chalom is the global head for strategic ecosystem partnerships at BlackRock.
“Our institutional clients are increasingly interested in gaining exposure to digital asset markets and are focused on how to efficiently manage the operational lifecycle of these assets.”
With assets under management clocking $10 trillion by the end of last year, BlackRock has emerged as a significant global player to the extent that it has been dubbed the “fourth branch of government.”
Aladdin, a BlackRock platform for investment management, aims to increase crypto adoption by institutional investors. Chalom said:
“This connectivity with Aladdin will allow clients to manage their bitcoin exposures directly in their existing portfolio management and trading workflows for a whole portfolio view of risk across asset classes.”
Coinbase Prime is the institutional prime brokerage arm of cryptocurrency exchange Coinbase. It integrates advanced agency trading, prime financing, and reporting to support the entire transaction lifecycle. Coinbase Prime, which supports more than 13,000 institutional customers, will provide crypto trading, prime brokerage and reporting capabilities. The deal also provides custody.
The BlackRock-Coinbase partnership is a step towards developing new access points as institutional crypto adoption continues to grow.
According to a recent study, 51% of Goldman Sachs’ institutional clients had crypto exposure.
The results revealed that there was an institutional interest in cryptocurrencies The crypto market was experiencing strong growth, with exposure rising from 40% to 51% in 2021 to 51% by 2022, Blockchain.News reported.