Market Analysis Report (05 Aug 2022)

Coinbase has announced a deal with BlackRock that would give the asset manager’s institutional clients access to cryptocurrency markets by connecting to Aladdin, BlackRock’s portfolio management platform, short for “Asset, Liability, Debt and Derivative Investment Network.”

The Aladdin platform provides essential infrastructure for the global investment industry, and will offer its clients access to cryptocurrencies. The first digital asset to be available will be bitcoin, but others will follow.

The Nasdaq-listed cryptocurrency exchange will provide cryptocurrency trading, custody, prime brokerage, and reporting capabilities. BlackRock is notably the world’s largest asset manager with over $10 trillion in assets under management.

Joseph Chalom, global head of strategic ecosystem partnerships at BlackRock, said:

“Our institutional clients are increasingly interested in gaining exposure to digital asset markets and are focused on how to efficiently manage the operational lifecycle of these assets.”

News that BlackRock was preparing a cryptocurrency trading service for its investor clients started circulating in February, when people familiar with the matter said it was looking to provide the offering through Aladdin.

Aladdin is one of the most widely-used pieces of technology in the financial services industry and links investors to markets while measuring risk. It’s used by asset managers, banks, insurers, pension funds, and corporations.