Investing in crypto may be easy for some people, but not always if you are an institution. If you manage a lot of money and have the necessary responsibilities, then you have slightly different needs than small investors. BlackRock, one of the world’s largest asset managers, is now lending a hand.
BlackRock is going to offer crypto
Crypto exchange Coinbase writes in a press release Which BlackRock will allow institutions to trade in cryptocurrencies. Coinbase will not only be the place where the coins are bought and can be sold again, but also the custodian. The real tokens thus remain in the hands of Coinbase.
Institutions see what they trade on BlackRock’s all-encompassing trading platform Aladdin, where Institutions can trade anything they want. Crypto were not yet possible without regular stock exchange products such as futures, but that is now changing.
The US exchange, like some other exchanges today, has a separate company for storing the digital assets. This company, Coinbase Custody Trust Company, is an official custodian regulated by the state of New York. That means it can be trusted. It has to be, given the reliance placed on massive asset manager BlackRock.
The exchange states that you can currently trade around 200 digital assets with Coinbase Custody and store more than 300 tokens securely.
Crypto remains, according to BlackRock
BlackRock may not be well known to the average investor, but it is the second largest asset manager in the world. The company manages about $8.5 trillion – that’s $8.5 trillion. Right now, only Vanguard is slightly bigger.
The asset manager has been in the news lately because it was often very positive about cryptocurrencies. For example, former CEO Edward Down stated that Bitcoin is not going to disappear, and that it would not be such a surprise if everyone investor had Bitcoin in their portfolio in a few years’ time.
Larry Fink, the current CEO, is also studying the new market closely. That is clear from the new announcement. He stated when the war in Ukraine started that it could accelerate crypto adoption.