Coinbase partners with BlackRock to bring crypto to enterprises

Coinbase – one of the largest and most popular cryptocurrency exchanges in the world – is partnering with investment giant BlackRock to give Customer Opportunity To trade digital assets.

Coinbase and BlackRock Collaborate

Joseph Chalom – Global Head of Strategic Ecosystem Partnerships at BlackRock – explained in a recent interview:

Our institutional clients are increasingly interested in exposure to the digital asset markets and focused on how to efficiently manage the operational lifecycle of these assets. This connection will allow clients to directly manage their exposure to Bitcoin in managing their existing portfolios and trading workflows for a comprehensive view of risk across asset classes.

It’s interesting to see BlackRock perform such a switch. Larry Fink, the company’s chairman, said nearly five years ago that bitcoin was a “money laundering benchmark.” He did not trust cryptocurrencies, and apparently had no desire to get involved in them.

However, things seem to have changed not exactly for Fink, but for the company’s clients. They are beginning to realize the true versatility of digital assets, and they want to. They are eager to take advantage of cryptocurrency offerings and expand their portfolios beyond the standard investment tools they have been exposed to.

Because of this, BlackRock appears to feel that it has no choice but to move forward with offering cryptocurrency to customers regardless of how Fink feels. Executives know that there is work to be lost if they do not change with the times and the introduction of cryptocurrency is likely to make everyone who comes to the BlackRock table satisfied.

Owen Lau – an analyst at Oppenheimer & Co. – offered his opinion on the new partnership, commenting:

After this validation, it is possible that Coinbase will be able to partner with the traditional financial industries. It shows that even with BlackRock’s scale, they will partner with a native crypto company, rather than building their own capabilities.

This move comes at an interesting time given how poorly the crypto space has been performing lately. For example, bitcoin is down more than 60 percent from its all-time high of more than $68,000 per unit last November. Currently, the asset is struggling to maintain a position in the low $20,000 range, and the entire crypto space has lost about $2 trillion in overall valuation.

There is a lot of controversy surrounding the stock exchange

The fact that the space can be in such a vulnerable state and yet so many institutions still want to take advantage of it is evidence that cryptocurrencies are becoming more pervasive and legitimate in the eyes of people – even as prices have fallen.

Coinbase has been at the center of a lot of controversy lately. The company is under investigation by the Securities and Exchange Commission, and a former employee has been charged with insider trading.

Tags: BlackRock, coinbase, institutions

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