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BlackRock, Coinbase partner on crypto offering

BlackRock will make cryptocurrency available to institutional investors through a partnership with Coinbase.

The investment giant selected Coinbase to provide its institutional clients with direct access to crypto, starting with Bitcoin, and the market reacted.

Coinbase shares jumped almost 60% from US$67.23 on August 3 and peaked at US$106.20 the following day. It slid nearly 17% to US$88.90 by August 4 market close.

BlackRock stock also jumped nearly 5% climbing from US$666.14 market close on August 3 peaking at US$696.67 August 4 before closing at US$696.01.

BlackRock clients will be able to use Aladdin, its end-to-end investment platform, to access Bitcoin through connectivity with Coinbase Prime.

A statement said leveraging Coinbase's comprehensive trading, custody, prime brokerage and reporting capabilities, common clients of Aladdin and Coinbase will be able to manage their digital asset exposures alongside their public and private investments for a whole-portfolio view of risk.

"The Aladdin platform provides the technology, data and tools to help investors make investment decisions by enabling transparency and data consistency at every point in the investment process. This integration will bring institutional-grade capabilities to the management of crypto exposure across the investment lifecycle from compliance, portfolio management, trading, operations and risk management," it added.

BlackRock global head of strategic ecosystem Joseph Chalom 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."

"This connectivity with Aladdin will allow clients to manage their bitcoin exposures directly in their existing portfolio management and trading workflows for a whole portfolio view of risk across asset classes."

Coinbase head of institutional Brett Tejpaul and vice president Greg Tusar called the partnership an exciting milestone for the firm.

"As the trusted partner enabling institutions to participate and transact in the crypto economy, we are committed to pushing the industry forward and creating new access points as institutional crypto adoption continues to rapidly accelerate. We are honored to partner with an industry leader and look forward to furthering Coinbase's goal of providing greater access and transparency to crypto," they said.

The statement added Coinbase Prime has over 13,000 institutional clients and is a fully integrated platform built specifically for institutions.

It supports the entire transaction lifecycle including advanced multi-venue agency trade execution for 200 assets, custody for more than 300 assets, prime financing, staking and staking infrastructure, data and analytics, and reporting.

Institutions can access Coinbase Prime directly via a user interface or as an integrated platform via APIs to offer crypto related products such as ETPs and ETFs, custodial solutions, or brokerage for institutional, private wealth, and retail clients.

Read more: BlackRockAladdinBitcoinCoinbase PrimeBrett TejpaulGreg TusarJoseph Chalom