coindesk.com
Asset management giant BlackRock (BLK) has partnered with the publicly traded crypto exchange Coinbase (COIN) to make crypto directly available to institutional investors.
Mutual customers of Coinbase and BlackRock’s investment management platform, Aladdin, will have access to crypto trading, custody, prime brokerage and reporting capabilities, according to a blog post Thursday.
“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,” said Joseph Chalom, global head of strategic ecosystem partnerships at BlackRock, in the blog post. “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,” he added.
The access will be granted through Coinbase Prime, an existing integrated trading solution for institutional crypto investors. The companies will continue to evolve the platform integration and will roll out functionality in phases, the blog post said.
Read more: Coinbase, With 9K Institutions Already Enlisted, Launches ‘Prime’ Out of Beta
The integration comes four months after BlackRock's CEO Larry Fink said the world's largest asset manager would explore ways to offer digital assets to its clients, confirming continued interest by institutional investors in the cryptocurrency industry. Coinbase has struggled this year amid the major plunge in crypto prices, stiff competition and a recent regulatory jolt. Luring more institutional money could pave the way for its recovery -- and a broader rebound for the entire digital-asset industry.
“BlackRock’s deep expertise in investment management technology, combined with Coinbase’s integrated and secure trading, custody and prime brokerage product suite will facilitate greater institutional access and transparency to digital asset investing," said Coinbase President Emilie Choi in an emailed statement.
Read more: How Are Institutions and Companies Investing in Crypto?