After years of protests, the world’s largest asset manager has finally taken a substantial plunge into crypto. BlackRock, which oversees $10 trillion in assets, is partnering with publicly traded Coinbase to give its institutional clients access to cryptocurrencies.
Bitcoin is the first digital asset to be offered through a partnership a blog post Coinbase, the most popular crypto exchange in the US, today released on the matter. BlackRock’s Aladdin investment management platform will provide connectivity to Coinbase Prime to offer crypto trading, custody, prime brokerage and reporting capabilities to shared clients.
“Ordinary customers of Aladdin and Coinbase will be able to manage their bitcoin exposure to their public and private investments as well as their entire portfolio view of risk,” BlackRock wrote in an announcement.
The news marks a major turnaround for BlackRock, whose chairman Larry Fink called bitcoin an “index of money laundering” five years ago. Since then, the asset management firm has made small strides in Web3, introducing bitcoin futures trading on its platform and some of its funds Last year. Fink told shareholders in a letter in March this year that BlackRock was studying “digital currencies, stablecoins and the underlying technologies” to see how they can help the firm serve its customers.
According to the company, Coinbase Prime today has 13,000 institutional customers using its suite of tools. It is unclear whether the companies plan to add other cryptocurrency offerings outside of bitcoin to the platform.
It’s a big day for Coinbase. Mark Zuckerberg, CEO of Meta announced today That his company has added integration with Coinbase’s wallet, among other third-party crypto wallets on the Instagram platform. Coinbase stock is up more than 17% as of 11:00 a.m. EST this morning and is up more than 70% over the past month, indicating that the company has begun to recover from its May lows since The crypto market pullback has hit a trough. ,
Unfavorable crypto market conditions make the exchange particularly difficult, as it announced a recruitment freeze and a round of layoffs this summer, the latter of which accounted for 18% of its employee base at the time. Its competitors have different reactions to the “crypto winter” – Gemini has had two rounds of layoffs in recent months, while Binance.US is actively working on new ones.