The biggest financial asset management company in the world is making significant investments in digital assets, starting with Bitcoin.
The largest financial asset management in the world, BlackRock, and cryptocurrency exchange Coinbase have partnered to offer direct access to cryptocurrencies, starting with Bitcoin (BTC), according to a new blog post published on Thursday. Users of BlackRock’s Aladdin platform for institutional investment management will gain access to Coinbase Prime’s crypto trading, custody, prime brokerage, and reporting tools.
Offering services for trading, custody, prime financing, staking, data gathering, and reporting on more than 300 digital assets, Coinbase Prime is an institutional trading solution. The service is intended for corporate treasuries, asset allocators, financial institutions, and hedge funds. Over 13,000 users utilize Coinbase Prime.
Joseph Chalom, global head of strategic ecosystem alliances at BlackRock, responded to the news by saying:
“Customers will be able to manage their Bitcoin exposures directly in their typical portfolio management and trading operations thanks to this connection with Aladdin, which will provide a comprehensive view of risk across all asset classes.”
Institutional investors can use Coinbase Prime directly through a user interface or as an integrated platform via APIs to access products connected to cryptocurrencies like exchange-traded funds, custodial services, or brokerage services. Coinbase Custody Trust Company, the custodian for Coinbase Prime, is subject to regulation by the New York Department of Financial Services.
Recently, Coinbase has seen a wave of regulatory problems. Last month, a former manager of Coinbase was arrested in the US on accusations of insider trading. Cointelegraph reports that the former manager has since entered a not guilty plea. According to reports, the Securities and Exchange Commission is also looking into whether Coinbase permits users to trade unregistered securities in the United States.
