BlackRock and Coinbase collaborate to provide institutional investors with crypto

BlackRock (NYSE: BLK) entered the cryptocurrency market in a big way by working with the crypto exchange Coinbase (NASDAQ: COIN).

BlackRock and Coinbase
BlackRock and Coinbase | Image: Coinbase

The partnership will allow BlackRock's institutional clients who already have assets on Coinbase to access the Aladdin asset manager suite of tools, allowing them to manage their portfolios and evaluate investment risk using a variety of methods made possible by the software, according to a press release from the cryptocurrency exchange on August 4.

This action is a logical extension of a former BlackRock executive's prediction that crypto will have a place in everyone's portfolio. On CNBC, Jim Cramer and Andrew Ross Sorkin discussed this new development and whether it will benefit Coinbase more.

“Yes, absolutely because some people feel that Coinbase is this rogue, that it’s actually an exchange, it’s not a company. But with discovering that it looks like the Senate wants this to be regulated by the CFTC, which is much more pro-Coinbase, it makes then sense that Larry Fink would want to deal with them.”

Whether Coinbase is acting ethically or not, Cramer continued, the fact that they list 200 different coins is kind of astonishing.

Additionally, many of the coins are really dubious; even Robinhood wouldn't accept many of them. Institutions want cryptocurrency, though, and Coinbase is the place to go.

BlackRock and Coinbase will keep working together to enhance the platform and integration with Aladdin, which should gradually roll out functionalities. Institutions that have contracts with both parties will be granted access to the portal.

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