BlackRock partners with Coinbase to develop cryptocurrencies with institutional investors

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 a very difficult situation, and this could offer it a momentary breath of fresh air.

BlackRock is developing a partnership with Coinbase

Meeting at the top: BlackRockthe world’s largest asset manager, announces that it has selected Coinbase as a partner to develop cryptocurrencies with its institutional clients.

The giant BlackRock, which has crossed the $10 trillion in assets at the start of the yearwill allow its customers taking advantage of Aladdin to have access to Bitcoin (BTC) through Coinbase Prime, the Coinbase system also intended for institutional investors.

Aladdin is a system ofartificial intelligence developed by the internationally recognized BlackRock which makes it possible to face the volatility and the uncertainties of the market via a continuous data analysis.

Concretely, Aladdin customers will be able to monitor their Bitcoin exposure together with their obligations and their actions, further proof of the interest that bring traditional financial players to cryptocurrencies and more generally to new technologies.

According Joseph ShalomHead of Strategic Partnerships at BlackRock, this is also the result of a growing demand from customers of the asset manager:

โ€œOur institutional clients increasingly want 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 flows, for a holistic view of risk across all asset classes. ยป

The news comes in the middle of the bear market, the outcome of which seems difficult to predict. The latter has also cost Coinbase dearly, which has been able to observe a reduction of 3/4 of its market capitalization since the beginning of this year. Already in June, the company had to part with a thousand of its employees in anticipation of the difficulties to come.

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Institutions to the rescue of the market

The Coinbase Prime service currently serves more than 13,000 clients made up exclusively of institutional investorsgiving them access to a wide range of services in order to support the entire trading lifecycle, in particular by offering them an advanced trading system that an asset custody service, data, analyzes and a staking offer.

According to Coinbase, institutionals accounted for 3/4 of the platform’s trading volume during the first quarter of the yearincluding asset managers and corporate treasuries.

As for BlackRock, last April the company had already participated in a financing round of around $400 million with Circle in order to assess the opportunities for using USDC in capital marketsin addition to its role as liquidity manager.

Following the announcement of its partnership with BlackRock, the title of Coinbase soaredaround 15%, to $92.66 at the start of the New York session.

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published by editions Larousse

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Source: Coinbase

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