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BlackRock and Coinbase forge crypto alliance

BitcoinBlackRock and Coinbase are set to join forces in a collaboration that will bring together two of the most recognisable names in the respective words of traditional and crypto asset management.

Under the terms of the deal, crypto exchange Coinbase will connect to BlackRock’s Aladdin portfolio management platform, thereby giving the asset manager’s clients access to cryptocurrencies.

The first cryptocurrency to be available will be bitcoin, with other currencies and tokens set to follow. 

“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.

The move represents a notable change in BlackRock’s stance on cryptocurrencies, considering that chief executive Larry Fink said back in 2017 that bitcoin was little more than a means of money laundering. 

In early 2021, the firm’s chief investment officer of global fixed income, Rick Rieder, said that BlackRock had “started to dabble a bit” into the crypto space after adding bitcoin futures to two of its funds.

The deal also represents a lifeline of sorts for Coinbase. Since listing last year, the exchange has seen trading volumes fall along with the price of cryptocurrencies.

This has forced Coinbase to put the brakes on its expansion plans, including cutting a fifth of its global workforce, equating to more than a thousand employees.

©2022 fundsTech

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