Coinbase is partnering with BlackRock to add Bitcoin (BTC) to the list of assets supported by the Aladdin system, further proof of the Wall Street giants’ interest in cryptocurrencies. The news comes as Coinbase finds itself in deep trouble, and this could offer a momentary breath of fresh air.
BlackRock is developing a partnership with Coinbase
Meeting at the top: BlackRock, the world’s largest asset manager, announces that it has selected Coinbase as a partner to develop cryptocurrencies for its institutional clients.
The giant BlackRock, which crossed $10 trillion in assets under management earlier this year, will allow its clients taking advantage of Aladdin to access Bitcoin (BTC) through Coinbase Prime, Coinbase’s system also aimed at institutions.
Aladdin is an internationally recognized artificial intelligence system developed by BlackRock that addresses market volatility and uncertainty through continuous data analysis.
In practical terms, Aladdin clients will be able to monitor their exposure to Bitcoin alongside their bonds and stocks, further evidence of the interest of traditional financial players in crypto-currencies and new technologies more broadly.
According to Joseph Chalom, head of strategic partnerships at BlackRock, this is also a result of growing demand from the asset manager’s clients:
“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 within their existing portfolio management and trading workflows, for a holistic view of risk across asset classes.”
The news comes in the midst of a bear market, the outcome of which seems difficult to predict. The latter has cost Coinbase dearly, as it has seen a 3/4 decrease in its market capitalization since the beginning of this year. Already in June, the company had to let go of about 1,000 of its employees in anticipation of the upcoming difficulties.
Institutions to the rescue of the market
Coinbase Prime currently serves more than 13,000 institutional customers, giving them access to a wide range of services to support the entire trading lifecycle, including an advanced trading system, custody service, data, analytics and a staking offer.
According to Coinbase, institutional clients accounted for 3/4 of the platform’s trading volume in the first quarter of the year, including asset managers and corporate treasuries.
As for BlackRock, as of last April, the company had already participated in a $400 million funding round with Circle to evaluate opportunities for USDC use in the capital markets, in addition to its role as a liquidity manager.
Following the announcement of its partnership with BlackRock, Coinbase’s stock was up about 15% to $92.66 in early New York trading.
