World’s largest investment manager partners up with Coinbase: Coinbase has been selected by BlackRock, the world’s largest investment manager, to offer institutional clients direct access to crypto. There are plans to start with bitcoin first. This is what Coinbase reports in a blog post.
First: direct access to bitcoin
„Today marks an exciting next step in our journey as we announce that Coinbase is partnering with BlackRock, through connectivity to Coinbase Prime. Coinbase Prime will provide crypto trading, custody, prime brokerage and reporting capabilities to its institutional customer base“
the announcement reads.
These options are intended for institutional investors of Alladin. That’s BlackRock’s end-to-end investment platform. They will first get direct access to bitcoin, and then there wil be an expansion into other cryptocurrencies. „Our institutional clients are increasingly interested in gaining exposure to crypto markets,“ explained Joseph Chalom, Global Head of Strategic Ecosystem Partnerships at BlackRock.
BlackRock and crypto
BlackRock is often looking for opportunities to invest in crypto. The company already invested in Circle, the company behind the stablecoin USDC. After this, BlackRock has continued to investigate cryptocurrencies.
This is great news for the adoption of bitcoin (and other crypto currencies). BlackRock is the largest fund manager in the world. It currently manages more than 8,000 billion euros of investments. In addition, it is very beneficial that institutional investors are being exposed to crypto. This allows a lot of money to flow into the market.
Positive news for Coinbase
This is also another bright spot for Coinbase, whose shares have dropped by 21% in one day last week. The US Securities and Exchange Commission (SEC) had classified nine cryptocurrencies which are traded on Coinbase as securities. As a result, they are now subject to securities laws, which can cause problems for the crypto exchange.
So this cooperation is certainly welcome, especially for shareholders of COIN, Coinbase’s stock. This share is now 20% higher than yesterday’s closing price, which means that last week’s loss has already been repaired.