• BlackRock will provide cryptocurrency to institutional clients through Coinbase

  • Coinbase has teamed with the world’s largest asset management to provide institutional clients with access to cryptocurrency.

    According to a Thursday blog post by Brett Tejpaul, head of Coinbase Institutional, and Greg Tusar, vice president of institutional product, by connecting BlackRock’s investment platform, Aladdin, and Coinbase Prime, the companies are providing crypto trading, custody, prime brokerage, and reporting capabilities to clients of both Aladdin and Coinbase.

    Following the announcement, BlackRock’s shares was trading at $694.27 as of 10:20 a.m. ET, up more than 0.5 percent on the day. Coinbase’s price was close to $96 at the moment, up more than 18% on the day.

    Coinbase Prime was established last year to provide institutions with the capacity to trade 200 assets and maintain over 300 assets. It also includes capabilities for prime finance, staking, analytics, and reporting.

    Aladdin integrates powerful risk analytics with robust portfolio management, trading, and operations tools. Asset managers, pension funds, insurers, and corporate treasurers are among those who use it.

    According to Joseph Chalom, BlackRock’s global head of strategic ecosystem alliances, institutional clients are increasingly interested in getting exposure to digital asset markets.

    “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,” Chalom said.

    The initial focus will be on providing institutional clients with access to bitcoin. BlackRock and Coinbase intend to expand their capabilities to other clients in the future.

    The $8.5 trillion asset manager’s entry into crypto follows the April launch of a blockchain ETF. The turmoil in Ukraine, according to BlackRock CEO Larry Fink, could hasten the adoption of digital currency.

    What's your reaction?