The biggest financial asset management firm in the world with $10 trillion in assets under management (AUM) is making a significant investment in digital assets, starting with Bitcoin.
Coinbase announced on Thursday that it is collaborating with BlackRock, the largest financial asset management in the world, to give its clients direct access to cryptocurrencies, starting with Bitcoin (BTC).
If they choose to join up for Coinbase Prime, users of BlackRock’s institutional investment management software Aladdin will also have access to crypto trading, custody, prime brokerage, and reporting features.
Coinbase Prime is an institutional trading solution in addition to offering trading, custody, prime finance, staking, data, and reporting services on more than 300 digital assets. The service is designed for organizations including corporate treasuries, asset allocators, hedge funds, and financial institutions. Coinbase Prime is used by more than 13,000 users.
Joseph Chalom, global head of strategic ecosystem relationships at BlackRock, stated the following comment on the development:
“This connectivity with Aladdin will allow clients to manage their Bitcoin exposures directly in their existing portfolio management and trading workflows for a whole portfolio view of risk across asset classes.”
Institutional investors can adopt Coinbase Prime to sell crypto-related products like exchange-traded funds, custodial services, or brokerage services directly through a user interface or as an integrated platform via APIs. The New York Department of Financial Services oversees Coinbase Custody Trust Company, the custodian for Coinbase Prime.
Recently, Coinbase has experienced a number of regulatory problems. A former Coinbase manager was detained by American authorities last month on suspicion of insider trading.
The former manager has subsequently entered a not guilty plea, as Cointelegraph recently reported. In the meantime, it’s been claimed that the US Securities and Exchange Commission is also investigating whether Coinbase permitted users to trade unregistered securities.