Institutional clients will be able to invest in the crypto asset with the service quality of the world’s leading platform. The management and trading of Bitcoin by BlackRock Inc. clients experiences a major upgrade with the beginning of a partnership between the largest investment bank and one of the industry’s largest exchanges, Coinbase.
The new partnership between BlackRock and Coinbase to offer a dedicated cryptocurrency service
Coinbase will allow the bank’s institutional clients to transact Bitcoin in their wallets via Aladdin online banking.
The platform, after losing about two-thirds of its value over the past year, has experienced a rebound in the wake of the news of the partnership with BlackRock, leading its COIN share value to recover 26% on the stock market to about $92.
Aladdin will allow people to optimally keep an eye on the cryptocurrencies in their portfolios thanks to the collaboration as well as facilitate online financing, operations on exchanges, ETFs and whatnot.
Bitcoin, despite having lost more than half of its value this year, partly due to economic and political junctures that indirectly alter its value and partly due to trust issues in the crypto asset (after the Terra/Luna and Three Arrow Capital cases) is still perceived as a safe and worthy investment by traders.
BlackRock, which has always been attentive to the quality of service offered to clients, with this collaboration secures the most effective know-how and protection of its clients with Coinbase as an official partner for the crypto world.
The collaboration will initially be solely and exclusively focused on Bitcoin, but there are plans to expand first to Ethereum (the second largest crypto by capitalization) and later to a narrow basket of digital currencies.
While the US exchange can rejoice over the stock market results achieved with the announcement of this collaboration, it remains ever alert to the moves of the US Securities and Exchange Commission.
The SEC’s investigation into Coinbase’s operations
The authority is conducting investigations involving the world’s leading cryptocurrency platform over suspicions related to the trading authorization of certain tokens.
The contention lies in the fact that according to the US Securities and Exchange Commission, some of the tokens traded on the platform would first have to be registered by the SEC and until then could not be traded.
If this were found to be the case, Coinbase would have traded tokens illegally and would suffer actions by the SEC traceable to multimillion-dollar fines and the possibility of operational shutdowns that would create yet another shakeup in the asset.
The danger seems averted, but Coinbase remains cautious and wisely collaborates with the financial industry itself (BlackRock) while also giving a strong signal that it believes in a rosy future.