orWith a partnership agreement with Coinbase, BlackRock is the latest company to take an interest in Bitcoin (BTC). The asset class has captured the attention of institutional clients of the world’s largest wealth managers, a significant milestone.
BlackRock’s clients will now have access to Coinbase’s cryptocurrency services in what could be a historic collaboration. Despite concerns about regulatory hurdles, the crypto community has universally embraced the Blackrock Coinbase alliance.
The largest wealth manager in the world, by asset under management (AUM), is BlackRock, with an astonishing total of $ 10 trillion in AUM. Governments, central banks and other institutions, among others, are part of its large institutional clientele in several countries.
According to a statement, the collaboration will allow BlackRock’s Aladdin institutional clients to access Coinbase Prime features. BlackRock clients will have access to a variety of Coinbase Prime services, including custody, cryptocurrency trading, and prime brokerage. The services are currently only available for Bitcoin (BTC) and expansion to support additional digital assets will depend on their adoption.
Why did Blackrock partner with Coinbase?
Blackrock aims to help its customers manage their assets more efficiently, which is why it has partnered with Coinbase. Clients will be able to manage their Bitcoin holdings directly through Coinbase Prime through the relationship. Blackrock said effective management of the operational lifecycle of crypto assets will be its top priority.
After the announcement, the cryptocurrency community reacted with great confidence. Blackrock’s foray into the cryptocurrency market is “a significant step forward for the industry in the long run,” according to Crypto Markets host Nick Mancini. He called the development significant given the size of Blackrock’s overseas operations globally.