Coinbase Inks Deal to Provide Crypto Services for BlackRock Clients, Shares Soar

Coinbase Prime will provide crypto trading, custody, prime brokerage and reporting capabilities to institutional clients on BlackRock's Aladdin.

Coinbase Inks Deal to Provide Crypto Services for BlackRock Clients, Shares Soar

Photo Credit: Coinbase

Coinbase has been one of the worst hit companies amid the ongoing crypto meltdown

Highlights
  • Coinbase Prime will provide crypto services to BlackRock's Aladdin
  • The crypto exchange was one of the worst hit by the ongoing crisis
  • Coinbase shares have falled 60 percent so far this year
Advertisement

Shares in cryptocurrency exchange Coinbase soared more than 16 percent on Thursday after it announced that it had partnered with BlackRock, the world's largest asset manager, to provide its institutional clients with access to crypto trading and custody services. 

The agreement offers some positive news for the company which, like many in the crypto sector, has been battered by a slump in crypto asset prices as investors fled risky assets amid geopolitical turmoil, rising rates and worries of an impending recession.

Coinbase has been among the worst hit, with shares down over 60 percent so far this year.

The company's institutional trading platform for crypto assets, Coinbase Prime, will provide crypto trading, custody, prime brokerage and reporting capabilities to institutional clients on BlackRock's Aladdin, who are also clients of Coinbase.

Aladdin offers a suite of software tools designed to help institutional investors manage their portfolios.

The news underscores how traditional institutions including pension funds, hedge funds, and banks have been pushing into crypto assets over the past 18 months, wagering the alternative asset class is here to stay.

“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,” said Joseph Chalom, Global Head of Strategic Ecosystem Partnerships at BlackRock in a statement.

Coinbase has been building out its institutional client base via its Prime platform which services hedge funds, corporate treasuries and other financial institutions, it says.

Institutional trading volumes on Coinbase in the first quarter of 2022 were $235 billion (roughly Rs. 18,61,500 crore) compared with $74 billion (roughly Rs. 5,86,100 crore) for retail customers, its filings show. While that institutional volume was down compared with the previous three quarters, it was up just over 9 percent compared with the same quarter last year.

© Thomson Reuters 2022


Will crypto tax hurt the industry in India? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Twitter Location Spotlight Feature for Businesses Released, Professional Home Feature Announced: All Details
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »