Coinbase’s institutional arm will help the world’s largest asset manager Blackrock provide Aladdin’s institutional clients with access to digital currencies.
Blackrock chose Coinbase because of its scale, experience, and comprehensive product offering, the company explains. Blackrock manages approximately $10 trillion in assets. Coinbase considers the partnership with Blackrock and Aladdin to be a “major milestone” for itself. The Aladdin Platform is a “network of assets, liabilities, debt and derivative investments”, an investment management and trading platform designed specifically for Blackrock institutional clients.
Joseph Chalom, Head of Strategic Ecosystem Partnerships at Blackrock, noted that his company’s clients are gravitating toward digital currencies:
“Our institutional clients are increasingly interested in entering the digital asset markets and are focused on how to effectively manage the operational life cycle of such assets. Linking with Aladdin will allow our clients to manage their risk with bitcoin directly in their existing workflows.”
Following the announcement of the Coinbase-Blackrock partnership, Coinbase Global (COIN) shares rose over 16%. They are currently trading at $88.90 apiece, according to Investing.com. Nevertheless, the value of the shares of the crypto exchange fell by 72% compared to the all-time high.
Earlier, Ark Invest, an investment company led by investor Cathie Wood, got rid of more than 1.4 million shares of the crypto exchange for a total of $75 million.