Coinbase would allow institutional investors of BlackRock to carry out crypto transactions via its Coinbase Prime feature.
Coinbase has announced a new partnership with BlackRock to provide direct crypto services for its institutional clients using Aladin –an end-to-end investment management platform of the asset manager.
According to the Aug. 4 announcement, the services would include crypto trading, custody, prime brokerage, and reporting capabilities provided through Coinbase prime.
Joseph Chalom, the global head of strategic ecosystem partnerships at BlackRock, said:
“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. 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.”
Blackrock is the largest asset manager in the world with over $8 trillion in assets under management.
In March, BlackRock’s CEO Larry Fink said the asset manager was looking at how to serve clients with digital currencies, citing the increased interest in the space.
The news comes at a time when the crypto industry is just recovering from a crash that saw the value of Bitcoin (BTC) and other digital assets drop to record lows. It is also coming at a time when Coinbase is faced with increased regulatory scrutiny over its listings.
Meanwhile, Coinbase’s shares have reacted positively to this news, jumping by around 40% to as high as $116. However, it has pulled back to $93.81 as of press time.