BlackRock Taps Coinbase to Facilitate Bitcoin Purchases – Finovate

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  • BlackRock has selected Coinbase to help its clients buy and sell bitcoin.
  • Under the partnership, clients of BlackRock Aladdin will benefit from Coinbase Prime.
  • Partnering with Coinbase will help BlackRock add digital currencies as an asset class for the first time.

Coinbase is partnering with BlackRock to help some of the asset manager’s institutional clients connect to Coinbase Prime, making it possible for them to buy and sell bitcoin.

Under the agreement, common clients of Coinbase and BlackRock’s end-to-end investment management platform Aladdin, will benefit from Coinbase Prime, a full-service platform to access crypto markets at scale. At the outset, Aladdin clients will be limited to using Coinbase Prime to buy and sell bitcoin.

With $10 trillion in assets under management, BlackRock offers clients a range of investment strategies, including alternative assets, sustainable investing, factor-based investing, systematic investing, and now digital assets. The company has 8,000 employees across the U.S. and works with more than 190,000 financial advisors to help build client portfolios.

The move adds cryptocurrency as an asset class for BlackRock clients for the first time. “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 BlackRock Global Head of Strategic Ecosystem Partnerships Joseph Chalom. “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.”

BlackRock and Coinbase will roll out functionality in phases to interested clients.

Coinbase was founded 2012 and went public late last year. The company trades on the NASDAQ under the ticker COIN. The news of a new client for Coinbase Prime has given Coinbase a boost this week after the recent crypto winter took its toll on the company, which announced a hiring freeze and layoffs earlier this summer. Coinbase’s market capitalization currently sits at $19.74 billion.


Photo by Alesia Kozik

Go to Publisher: Finovate
Author: Julie Muhn (@julieschicktanz)