Coinbase announced they’ve partnered with the largest asset manager in the world, BlackRock, ‘to create new access points for institutional crypto adoption’ yesterday. Now that BlackRock partners with Coinbase, institutional clients using Aladdin, BlackRock’s investment platform, will have direct access to Bitcoin by connecting to Coinbase Prime.
BlackRock is the world’s largest asset manager with over $10 trillion in assets under management as of January 2022. They’ve been warming to the space for a few years now after launching a working group to explore the space in 2018. More recently BlackRock’s CEO has been quoted saying the firm would explore ways to offer digital assets to it’s customers. It looks like they’ve found those ways.
Coinbase on the other hand has been a market leader in the cryptocurrency space offering every service under the sun for their customers. With this partnership their Coinbase Prime product will offer BlackRock customers with crypto trading, custody, prime brokerage and reporting capabilities. Coinbase plans to role additional cryptos and capabilities into the platform over time.
Coinbase has faced a slew of bad press over the last few months. They’ve had multiple investigations by the Securities and Exchange Commission regarding potential unregistered securities violations. They also took a ton of heat over some changes to their terms of service. Their shares have taken a beating over the past year right through that bad press. That being said they’ve seen a nice pop over the last few days coming into this news.