BlackRock’s Aladdin is partnering with Coinbase to bring cryptocurrency trading services to its institutional clients.
Through the partnership, Coinbase’s institutional arm, Coinbase Prime, will offer its services in crypto trading, custody, prime brokerage and reporting capabilities on BlackRock’s end-to-end investment management platform, Aladdin.
Aladdin is BlackRock’s catch-all for investment management, where institutional clients can conduct all aspects of their business in one place. Features of Aladdin include portfolio management and trading, compliance, operations and risk oversight.
The service will be available to institutions that are clients of both BlackRock and Coinbase Prime. BlackRock and Coinbase said the partnership will initially focus on bitcoin trading.
‘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,’ stated Joseph Chalom, global head of strategic ecosystem partnerships at BlackRock. ‘This will allow clients to manage their bitcoin exposures directly in their existing portfolio management and trading workflows for a whole portfolio view of risk across asset classes.’
Shares of Coinbase soared upon news of the partnership. Shares of the cryptocurrency exchange changed hands 10.2% higher at $88.90 in Thursday afternoon trading on the Nasdaq.