A new crypto partnership is around the corner. The world’s largest asset manager, BlackRock Inc. is joining hands with Coinbase to provide institutional clients with direct access to bitcoin despite the downward spiral in the market. This might prove to be a temporary light at the end of the tunnel for crypto in general which has been passing through a rather tough phase. As per the statement made on Thursday, the collaboration will provide the common clients of BlackRock and Coinbase in addition to Aladdin, BlackRock’s investment management platform, access to crypto trading, custody, and prime brokerage, and reporting capabilities. The partnership proves that digital assets are yet to go out of vogue. According to Joseph Calom, global head of strategic ecosystem partnerships at BlackRock,
“Our institutional clients are increasingly interested in gaining exposure to digital asset markets and are focused on how to efficiently manage the operational life cycle of the assets.”
The What and Why
Does bitcoin have in its possession a magnetic charm that draws industry giants towards it? Although the statement is puerile, one cannot help but wonder about the hidden potential of bitcoin. BlackRock’s collaboration with Coinbase is not an abrupt move rather it was pre-meditated. There were hints about BlackRock’s sway towards bitcoin wafting in the air since March. Back in March, in a letter to shareholders, Larry Fink, BlackRock’s chairman stated that the company is studying digital currencies, and stablecoins in response to interest from certain institutional clients. The partnership has been quite a relief for Coinbase whose shares were dwindling the past week. Following the announcement, Coinbase’s shares have shot up again. At present, the partnership is limited to Bitcoin. However, it might extend to others depending on the demands and needs of the clients.
Times haven’t been quite favorable for the crypto domain lately as the cryptocurrency prices have witnessed a continuous plunge. This has resulted in layoffs at exchanges like Coinbase and Gemini Trust. In addition to this, Coinbase is facing an investigation from the Securities and Exchange Commission over allegations of allowing Americans to trade digital tokens which should have been actually registered as securities. This is according to a Bloomberg report.
The news of the partnership has caused ripples across Twitter, and this is quite evident in the reactions and responses. Let us flip through a couple of reactions and responses on Twitter.
ESG for thee.
China for me.
That’s the BlackRock way.
— Vivek Ramaswamy (@VivekGRamaswamy) August 3, 2022
Viewed from the perspective of The Great Reset, it appears Bill Gates may be engaged in the same kind of wealth-shift scheme as BlackRock and other investment groups that are buying up single-family homes and turning them into rentals.https://t.co/o2FQcuqQ01
— Robert F. Kennedy Jr (@RobertKennedyJr) July 27, 2022
A Thought. @BlackRock runs the world. Today they announce @coinbase partnership. The same @coinbase @GaryGensler has been threatening. One phone call gets little Gary to back off. This goes in the "All The World's A Stage" File for sure.
— Digital Asset Investor (@digitalassetbuy) August 4, 2022
You know BlackRock is running the show now. https://t.co/Icden7ubes
— David Gokhshtein (@davidgokhshtein) August 4, 2022
$10 trillion BlackRock is offering ONLY #bitcoin to its institutional clients 🙌
— Bitcoin Magazine (@BitcoinMagazine) August 4, 2022
BlackRock is partnering with Coinbase to increase the institutional adoption of bitcoin.
It is not often that you live through the birth and scaling of a new multi-trillion dollar asset class.
— Pomp 🌪 (@APompliano) August 4, 2022
Maybe something. https://t.co/7ilQCvwGfN
— The Wolf Of All Streets (@scottmelker) August 4, 2022
BlackRock and Vanguard shun the U.S. coal industry yet invest billions in a Chinese company whose name is literally “China Coal Energy Company,” without saying a peep about ESG over there.
The hypocrisy is staggering.
— Vivek Ramaswamy (@VivekGRamaswamy) July 29, 2022
BlackRock partners with Coinbase to offer bitcoin access to institutional investors, despite market downturn https://t.co/fHpkqLp2t8
— MarketWatch (@MarketWatch) August 4, 2022