BlackRock is searching for ways how to ease customer access to crypto markets.
BlackRock, a New York-based investment management corporation established in 1988, is joining forces with Coinbase to allow its users to directly access digital asset markets.
According to the announcement shared on Coinbase, the goal is to “provide institutional clients of Aladdin®, BlackRock’s end-to-end investment management platform, with direct access to crypto, starting with Bitcoin, through connectivity with Coinbase Prime.”
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By using Coinbase Prime, Aladdin’s users will be able to use crypto trading, prime brokerage, custody, and reporting services.
Coinbase Prime is designed to overlook the whole lifecycle of transactions and employ “advanced agencies” like trading, prime financing, data, staking, custody, staking infrastructure, and reporting for almost 300 crypto assets. It has been greatly used by asset allocators, hedge funds, financial institutions, and corporate treasuries.
BlackRock’s Global Head of Strategic Ecosystem Partnerships, Joseph Chalom noted that their clients are getting more and more interested in digital asset markets and are searching for ways to safely control 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,” says Chalom.
In other news, Coinbase has recently faced a number of challenges. At the end of July, former Coinbase manager Ishan Wahi was arrested due to allegations of wire fraud conspiracy and wire fraud charges.
A few days after that, the U.S. The Securities and Exchange Commission started an investigation regarding claims that Coinbase allowed users to trade unregistered securities.
As a result of these law-related allegations, Cathie Wood’s investment company Ark Invest has sold a total of over 1.4 million Coinbase shares.