On August 4, Brett Tejpaul, Head of Coinbase Institutional, and Greg Tusar, Vice President of Institutional Products, announced that financial giant BlackRock has selected announced that Coinbase has been selected to provide access to cryptocurrencies on its Aladdin platform.
BlackRock selects Coinbase to connect Aladdin customers to crypto
Coinbase’s institutional division will help BlackRock (NYSE:BLK), the world’s largest asset manager, provide Aladdin’s institutional clients with access to digital currencies. The company cites BlackRock’s “scale, experience, and integrated product offering” as reasons for choosing Coinbase. A publicly traded company,Coinbase(Nasdaq:COIN) has a long history in the crypto space since it was founded in 2012 by Brian Armstrong and Fred Esam.
a multinational investment management firm based in New YorkBlackRockis one of thelargestfinancial institutions in the world. BlackRock handles approximately10 trillion in assets under management (AUM)recorded in 2021. Coinbase considers its partnership with Blackrock and Aladdin a “milestone” for crypto asset companies, as the Aladdin platform stands for Asset, Liability, Debt, and Derivative Investment Network, and an investment management and trading platform designed specifically for Blackrock’s institutional investors.
“Blackrock and Coinbase will continue to integrate the platform and roll out features to interested clients in phases,” Tejpol and Tozer wrote Thursday.In mid-June, Rick Reeder, Blackrock’s chief investment officer for global fixed income, said explained that cryptocurrencies such as bitcoin (BTC) are durable assets; in April, BlackRock launched a blockchain-listed fund, and in the same month BlackRock was named “the leading asset manager for USDC cash reserves.”
Blackrock Exec: ‘Institutional Clients Are Increasingly Interested in Gaining Exposure to Digital Asset Markets’
Joseph Charom, Global Head of Strategic Ecosystem Partnerships at BlackRock, said that BlackRock’s client base is being drawn to digital currencies.” Our institutional clients are increasingly interested in gaining exposure to the digital asset markets and are focused on how to efficiently manage the operational lifecycle of these assets.” Chalom said Thursday. The BlackRock executive added,
This connectivity with Aladdin will allow clients to manage their bitcoin exposure directly in their existing portfolio management and trading workflows and gain a portfolio view of risk across asset classes.
COIN shares were up more than 16% in the morning trading session on Thursday (EST) following the announcement of the Coinbase and BlackRock partnership. However, COIN is downdown 72.46% from the stock’s all-time high. Additionally, at the end of June, Goldman Sachs downgraded COIN to Sell.
This news follows the July 25 report of an alleged U.S. Securities and Exchange Commission (SEC) investigation and the company’s recent European expansion; in mid-June, Coinbase also announced that, according to the company’s co-founder and CEO Brian Armstrong, “We’ve been working to ensure (Coinbase) is healthy during this economic downturn. . to ensure that it remains so,” and that the company would have to cut 18% of its workforce.
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