Investment management firm BlackRock Inc. has partnered with cryptocurrency exchange Coinbase Global Inc. to provide institutional clients with access to crypto trading and custody services.
See related article: Coinbase, biggest US crypto exchange, cuts workforce by 18%
Fast facts
- BlackRock is extending the use of its Aladdin asset management software suite to its institutional clients who also own digital assets through Coinbase.
- Aladdin is a renowned software suite that helped BlackRock to become one of the largest investment management firms in the world and is a significant development for crypto’s rate of institutional adoption.
- “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.
- The partnership marks some positive news for Coinbase which, like much of the crypto industry, has been heavily battered by the downturn in the crypto market this year.
- The U.S.-based exchange recently announced it was cutting its global workforce by roughly 18% to ensure it remains “healthy during this economic downturn.”
- Coinbase’s share price soared over 30% in early Thursday trading on U.S. markets following the news before retreating to close trading up 10% at US$88.90 — more than 60% down from its price from the start of the year.
See related article: Former Coinbase manager arrested on insider trading charges