On Thursday, BlackRock and Coinbase announced a partnership that will allow institutional clients of the world’s largest asset manager to buy bitcoin. A breath of fresh air for a cryptocurrency exchange platform that has been struggling for months now.
On Thursday, a major partnership was announced between the world’s number one asset management company BlackRock and bitcoin platform Coinbase. The two companies will indeed join forces to allow institutional clients of the asset manager to buy bitcoins through Alladin, a software suite developed by Blackrock for institutions. Very advanced in risk analysis, it specifically allows the asset manager’s institutional clients to better control their operations.
“(…) We are announcing that Coinbase has partnered with BlackRock, the world’s largest asset manager, to provide institutional clients of Aladdin, BlackRock’s end-to-end investment management platform, direct access to cryptocurrencies, starting with bitcoin, via connectivity. with Coinbase Prime,” Coinbase said in a statement released Thursday.
So on Aladdin, these investors will be able to buy cryptocurrencies through Coinbase and see how well Bitcoin risk fits into their overall portfolio.
Share price on the rise
This is a master move for Coinbase. Following the announcement of this partnership on Thursday, Wall Street saw a surge of activity on the cryptocurrency exchange platform. That day, the Coinbase title soared about 15% to $92.66 at the start of the New York session.
Blackrock institutional clients (money management banks, hedge funds, etc.) who have already used Coinbase will now be able to access the professional services of Prime’s Bitcoin trading platform. They can get this with Aladdin, a software package developed by Blackrock that offers portfolio management tools for institutions.
Coinbase in turmoil since the beginning of the year
The partnership with Coinbase offers a breath of fresh air for the platform, whose shares have fallen nearly 60% since the beginning of the year due to the collapse in the cryptocurrency market.
Worried about inflation, rising interest rates and the risk of a recession, investors are turning away from assets considered risky and volatile, including bitcoin. In this challenging context, Coinbase announced in mid-June that it was losing 18% of its workforce, or about 1,100 positions.
Last month, the US Stock Market Police (SEC) also charged former company officials with electronic fraud and insider trading, a first in the virtual currency sector.