Coinbase is teaming up with the world’s largest asset managers to offer institutional clients access to cryptocurrencies.
We are proud to announce a partnership with @BlackRock. BlackRock’s Aladdin clients will now have direct access to crypto markets through Coinbase Prime.
Read more ?https://t.co/LA3XeYYbvs
— Coinbase (@coinbase) August 4, 2022
San Francisco-based cryptocurrency exchange Coinbase has announced that it is partnering with the world’s largest asset manager, Blackrock.
Details About the Offering
The partnership will provide institutional clients of Blackrock’s investment platform, Aladdin, with direct exposure to crypto assets.
Notably, the partners have chosen to start with Bitcoin, the world’s largest cryptocurrency, which will be offered via connectivity with Coinbase Prime.
According to the announcement, Coinbase Prime will be used to provide Aladdin’s institutional clients with access to cryptocurrency trading, brokerage, reporting capabilities, as well as custody.
In addition, the partners noted that they would be rolling out important features and functionality to clients in phases. It is noteworthy that the service will be available to institutional clients contracted with both Aladdin and Coinbase.
Joseph Chalom, Global Head of Strategic Ecosystem Partnerships at BlackRock, said Aladdin institutional clients had recently shown a massive interest in cryptocurrencies.
These investors have been focused on effectively managing the operational life cycle of the asset class, Chalom said.
“This connectivity with Aladdin will allow clients to manage their bitcoin exposure directly in their existing portfolio management and trading workflows for a whole portfolio view of risk across asset classes,” he added.
A joint statement was issued by Brett Tejpaul, Head of Coinbase Institutional, and Greg Tusar, Vice President, Institutional Product, stating the significance of the partnership to the San Francisco-based cryptocurrency exchange:
“The Coinbase partnership between BlackRock and Aladdin is an exciting milestone for our firm. As the trusted partner enabling institutions to participate and transact in the crypto economy, we are committed to pushing the industry forward and creating new access points as institutional crypto adoption continues to accelerate rapidly.”
Coinbase Stock Spikes Over 40%
Interestingly, the development positively impacted Coinbase stock, COIN. Moments after the announcement, the asset class soared over 40% to $116.
According to Trading View data, Coinbase’s stock rose more than 40% to $116 at the beginning of the session, benefiting from the partnership established by BlackRock Group, and is currently falling back. https://t.co/SYqyeYaExd pic.twitter.com/4WtL2TOXZJ
— Wu Blockchain (@WuBlockchain) August 4, 2022