With the introduction of bitcoin to Aladdin, the partnership between BlackRock and Coinbase raises some intriguing questions about future developments.
A week ago, the heavy-hitter BlackRock made headlines with their announcement regarding the incorporation of cryptocurrencies into their platform. institutional investment platform This integration will be realized through their partnership with Coinbase Prime, which is specifically designed for institutional clients.
Both Brett Tejpaul, Head of Coinbase Institutional, and Greg Tusar, BlackRock's VP of Institutional Product, provided further insights about their collaboration. They noted, 'Coinbase Prime is set to deliver crypto trading, custody, prime brokerage, and reporting features to Aladdin’s institutional clients who also utilize Coinbase.' blog Initially, Bitcoin will be the first cryptocurrency available on the Aladdin platform, with the potential for additional cryptocurrencies to be added later. This cautious approach is understandable. Bitcoin Joseph Chalom, BlackRock’s Global Head of Strategic Ecosystems partnerships, mentioned, 'Our institutional clientele is increasingly eager to venture into the digital asset markets, and they seek efficient strategies to manage the operational lifecycle of these assets.'
'Coinbase’s extensive scale, expertise, and comprehensive product suite made them an obvious choice as a partner for Aladdin,' they elaborated. This partnership is expected to evolve, rolling out features in stages. It's important to note that only clients already engaged with both Aladdin and Coinbase Prime can participate.
Coinbase Prime currently serves around 13,000 institutional clients through its fully integrated platform, which offers financing, staking data, and comprehensive reporting tools.
As of Q2 2022, BlackRock was managing approximately $8.5 trillion in assets, while Aladdin caters to over 200 institutional users. CoinDesk This collaboration is not just about generating buzz for Aladdin; it aligns with existing trends in the industry. Recently, Blockworks noted that 'Goldman Sachs completed its first cash-settled cryptocurrency options trade with Galaxy Digital in March, and just the next month, Fidelity expressed intentions to allow individuals to allocate part of their retirement savings into bitcoin.'
Following the announcement, market leaders have been eagerly watching to see if BlackRock's newfound pro-crypto attitude could signal a significant shift in market dynamics.
It's noteworthy that BlackRock's CEO, Larry Fink, had previously expressed skepticism about bitcoin in 2017, stating, 'Bitcoin merely illustrates the demand for money laundering.' Financial Times Earlier remarks from BlackRock indicating interest in the crypto space date back to last spring. covered Historically, a partnership with BlackRock would have been monumental for the crypto world. Some analysts even predicted that the BlackRock and Coinbase partnership could propel bitcoin's value to $773,000. However, since then, bitcoin's price barely moved and even saw a decline. BlackRock's stock reflected only a slight change, though Coinbase experienced a surge, impacting short-sellers' profits by around $230 million.
'Coinbase ranks as one of the most shorted companies on the US stock exchange, with over 20% of its shares sold short,' they reported. This trend led Coinbase to reevaluate its growth strategy in June, resulting in a significant reduction of its workforce by 20%. Additionally, there were legal troubles involving one of its employees in the US. outlet There are questions surrounding why BlackRock's significant announcement failed to stir bitcoin's price. Each new potential market surge appears to defy historical patterns, which leaves many wondering if another major bull run will ever echo the extravagant rises of the past. Market Insider .
'It's hard not to feel a bit of schadenfreude towards recent crypto investors,' Bloomberg noted. 'They amassed substantial wealth that seemed disproportionate to their capabilities and were quite dismissive of traditional finance perspectives... Yet, that kind of success was bound to fade, and indeed it has. A fundamental premise of Bitcoin was to serve as a hedge against traditional financial systems.' NFT platform 'The reality is that cryptocurrency should be integrated into the portfolios of institutional investors,' Bloomberg concluded. insider trading last month.
Bloomberg CK Zheng, co-founder and CIO of ZX Squared Capital, shared with Blockworks, 'I believe the strong interest from institutional investors will be a key positive driver in the next cryptocurrency cycle,' especially in light of innovations like JPMorgan's new JPM Coin. He emphasized that this outlook hinges on broader developments.
Interestingly, conversations on Reddit reflect similar sentiments, with a prominent commentator on Shiba Inu pointing out that amidst the hype, informed investors are methodically building their wealth. 'Whales, institutional investors, and savvy individuals command over 98%+ of holdings without engaging in the gimmicky art associated with this space and profit with every Shib cycle,' they noted. hedge against inflation . That has turned out to be false.”
While Coinbase may not have the ability to singlehandedly revitalize bitcoin, smart strategic moves could position them for success. If one’s network indeed defines their worth, it seems Coinbase is moving in the right direction. portfolios There will be a Q&A session this evening at 5:30 PM ET to discuss the results from the second quarter.
Binance Institutional is encouraging large businesses to consider purchasing during the dip. regulatory expansion Gucci has started accepting payments in ApeCoin, while BitPay has embraced both Euro Coin and ApeCoin.
The much-anticipated Coinbase NFT Marketplace has finally launched. Will it manage to overshadow OpenSea? they said .
It's important to clarify that the information on this page is not intended as legal, tax, investment, or financial advice. Only invest what you can afford to lose, and seek independent financial guidance if you're uncertain. For more details, we recommend checking the terms and conditions and the help resources provided by the issuer or advertiser. MetaversePost is dedicated to delivering accurate and impartial reporting, yet market conditions can shift without prior notice. Tune in Vittoria Benzine, an art writer and personal essayist based in Brooklyn, focuses on contemporary art within the realms of human context, counterculture, and chaos magic. Her work can be found in publications such as Maxim, Hyperallergic, Brooklyn Magazine, and others.
Read related posts:
Disclaimer
In line with the Trust Project guidelines Solv Protocol, Fragmetric, and Zeus Network have teamed up to roll out FragBTC, a yield-generating Bitcoin product that runs natively on Solana.
