Coinbase shares soared Thursday after the crypto exchange announced a tie-up with asset manager BlackRock that will make it easier for institutional investors to buy and sell bitcoin.
B Blog post On Coinbase’s website, the company said it would connect with Aladdin, BlackRock’s investment technology platform. The platform, which provides essential plumbing for the global investment industry, will allow BlackRock clients direct access to crypto. The first token available will be Bitcoin.
currency base Shares initially rose 30% before settling down 17% on the Nasdaq in New York.
The tie-up with the world’s largest asset manager is a boost for Coinbase, which has had a tough year as crypto market valuations plummet and customers trade less frequently.
In June, it abandoned its growth plans and cut a fifth of its workforce – more than a thousand people – as the decline in cryptocurrency trading volumes and prices rattled the industry’s biggest players.
Before Thursday’s rally, Coinbase shares had lost two-thirds of their value in the past year. In addition to her troubles, US prosecutors last month charged a former employee and two of his associates with insider trading.
Coinbase said it will provide customers of black stone with “crypto trading, custody, prime brokerage and reporting capabilities,” adding that the tie-up was “an exciting milestone for our company.”
Blackrock’s Aladdin system It is one of the most widely used pieces of technology in the financial services industry, connecting investors to markets and measuring risk. It is used by asset managers, banks, insurance companies, pension funds and corporations.
“Our institutional clients are increasingly interested in exposure to digital asset markets and are focused on how to effectively manage the operational lifecycle of these assets,” said Joseph Dream, global head of strategic ecosystem partnerships at BlackRock.
“This connectivity with Aladdin will allow clients to manage their Bitcoin exposures directly within their existing portfolio management and trading processes.”
BlackRock’s clients will be linked to the Coinbase Prime platform, which it says provides trade execution on 200 assets, as well as data, analytics and reporting.
Coinbase shares surge on tie-up with BlackRock Source link Coinbase shares surge on tie-up with BlackRock