September 29, 2022


BlackRock, one of the largest asset managers, has partnered with Coinbase Global to allow its institutional client base to access crypto, while the latter has a chance to reverse its downward spiral price.

The partnership will bridge Aladdin—BlackRock’s end-to-end investment management platform—with Coinbase Prime to allow BlackRock’s institutional clients instant access to cryptocurrencies, starting with Bitcoin only for now.

THE STATEMENT famous“Coinbase Prime will provide crypto trading, custody, prime brokerage and reporting capabilities to Aladdin’s institutional client base who are also Coinbase customers.”

New Partnerships Boost Coinbase’s Downward Growth

The news comes at a time when Coinbase’s faltering performance has reportedly taken its toll on its ranking among the top 10 digital asset exchanges by volume worldwide. It has also fueled the pace of growth of competitors such as FTX and Binance as they continue their expansion into the US and Europe. Meanwhile, rumors that the exchange may be facing a liquidity crisis had also recently gained momentum due to its decision to suspend its affiliate program, further hurting Coinbase.

Shares of the largest US exchange also took a further hit when Cathie Wood, who has been known to steadily accumulate undervalued Coinbase ( COIN ) shares, decided to back down after a Bloomberg report said Coinbase was under investigation by the Commission US Capital Market. SEC).

Ark’s intraday trading showed three Ark Investment Management funds sold slightly more than 1.41 million shares for a total of about $75 million, after being the company’s biggest cheerleader since its Nasdaq listing.

Meanwhile, in the harsh environment of a cryptocurrency market downturn, Faryar Shirzad, the head of policy at Coinbase, acknowledged in an interview in June that there may be additional layoffs in the future as part of a long-term strategy to “properly run the company . » Notably, Coinbase has already laid off more than 1,000 employees, which constituted 18% of its workforce, in recent months.

As such, the new partnership could revitalize the exchange through Coinbase Prime’s advanced trading, custody, insurance and staking, among other functions.

BlackRock reports increased interest in cryptocurrencies among institutions

Coinbase Prime, which is an institutional prime broker platform, is reported to serve around 13,000 institutional clients.

For the money manager, the partnership is driven by increased institutional demand. Joseph Chalom, Global Head of Strategic Ecosystem Partnerships at BlackRock said: “Our institutional clients are increasingly interested in gaining exposure to digital asset markets and are focused on how to effectively manage the operational lifecycle of these assets.”

“This connectivity with Aladdin will allow clients to manage their bitcoin exposures directly into their existing portfolio management and trading workflows for a view of their entire portfolio of risk across all asset classes,” added Chalom.

CoinShares’ latest report also highlights a strong inflow into digital asset products for the month of July, indicating increased institutional crypto investment.

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