Coinbase and BlackRock have announced a partnership to improve digital asset market access for asset managers' clients. It is another sign of how more and more traditional investors are getting involved in cryptocurrencies.
A new partnership between San Francisco-based Coinbase and BlackRock's Aladdin investment technology platform was announced recently. By providing crypto access directly to clients of the world's largest asset manager, the system provides essential plumbing for the global investment industry. It is likely that other tokens will follow bitcoin as the first to be offered.
It's a massive win for Coinbase, which has suffered when crypto prices have fallen, and trading volumes have declined since its direct listing last year. The data also shows how some institutional investors are more active than others when it comes to investing in digital tokens regardless of the turbulence in crypto markets this year.
The institutional market for digital assets is becoming increasingly popular among our institutional clients. According to Joseph Chalom, global head of strategic ecosystem partnerships at BlackRock, client priorities include managing operational lifecycles efficiently for these assets.
In the immediate aftermath of the Wall Street opening, shares of Coinbase grew by 44 percent before falling by about 15 percent. Despite this, claims will remain below 60 percent in 2022.
Financing using Cryptocurrency
Analyst Dan Ives with Wedbush Securities believes that the BlackRock deal gives Coinbase much-needed confidence after a turbulent year.
During the downturn in the crypto markets, Coinbase cut more than a thousand jobs and abandoned its growth plans. The situation became more complicated by the fact that US prosecutors charged a former employee and two of his associates with insider trading.
During the downturn in the crypto markets, Coinbase cut more than a thousand jobs and abandoned its growth plans. The situation became more complicated by the fact that US prosecutors charged a former employee and two of his associates with insider trading.
Investment research firm New Constructs' chief executive officer David Trainer sounded skeptical about the Coinbase-BlackRock venture. We don't believe that institutions require more accessible access to crypto since any institution could gain access through other means.
In addition to Crypto Trading, Custody, Prime Brokerage, and Reporting, Coinbase will also provide these services to BlackRock customers. Our company is excited about the partnership, adding that it is "an exciting milestone."
Aladdin system of Blackrock, a technology that links investors to markets and measures risk, has become an essential piece of technology in the financial services industry. Companies, pension funds, banks, insurers, asset managers, and pension funds use it.
Recommendations
A stark contrast can be seen between this deal and BlackRock chief executive Larry Fink's previous position on cryptocurrency. The Bitcoin movement shows how much demand for money laundering there is worldwide, he said at the Institute of International Finance meeting in October 2017. All right, that's all for now."
The asset manager, however, said institutional clients have continued to show interest in trading crypto in the second quarter of this year. Stablecoins, crypto assets, tokenization, and authorized blockchains are just a few areas where we studied the digital asset ecosystem to understand what's relevant to our clients."
Earlier this year, BlackRock announced that, with asset managers such as Fidelity and Marshall Wace, it had invested in Circle, global Internet payments and treasury infrastructure group that issues USDC stablecoins.
Earlier this year, BlackRock announced that, with asset managers such as Fidelity and Marshall Wace, it had invested in Circle, global Internet payments and treasury infrastructure group that issues USDC stablecoins.
Cryptocurrencies such as stablecoins serve as bridges between traditional markets and crypto markets by being pegged to an asset, such as the US dollar. With its assets invested exclusively in short-term Treasury bonds, BlackRock became Circle's primary manager of USDC cash reserves.
Coinbase Prime Overview
In addition to being one of the leading institutional prime broker platforms for crypto assets, Coinbase Prime has over 13,000 institutional clients worldwide.
Designed specifically for institutions, Coinbase Prime supports the entire transaction lifecycle from start to finish. With it, you can execute multivenue agency trades for 200 assets, have custody for more than 300 assets, use prime financing, staking and staking infrastructure, and access reporting and data analytics.
Institutional, private wealth, and retail investors can use Coinbase Prime directly through the user interface or as an integrated platform via APIs for offering crypto products such as ETPs, ETFs, brokerage, and custodial solutions.
Coinbase Prime's custodian is also competent in addition to Coinbase Custody Trust Company. New York Department of Financial Services regulates a New York limited purpose trust company. Following the Banking Law of New York, Coinbase Custody Trust Company acts as a fiduciary.