Coinbase stated that is is partnering with BlackRock, the world’s largest financial asset manager, to provide its clients with direct access to crypto, starting with Bitcoin. Users of BlackRock’s institutional investment management platform Aladdin will receive crypto trading, custody, prime brokerage and reporting capabilities should they also elect to sign up for Coinbase Prime.
Coinbase Prime is an institutional trading solution that provides trading, custody, prime financing, staking, data and reporting services on over 300 digital assets. The service is tailored to entities such as hedge funds, asset allocators, financial institutions and corporate treasuries. Over 13,000 clients use Coinbase Prime.
Institutional investors can access Coinbase Prime directly via a user interface or as an integrated platform via APIs to offer crypto-related products such as exchange-traded funds, custodial solutions, or brokerage services. Coinbase Prime’s custodian, Coinbase Custody Trust Company, is regulated by the New York Department of Financial Services.
Coinbase has had a string of regulatory conflicts as of late. Last month, U.S. authorities arrested a former Coinbase manager on allegations of insider trading. The former manager has since pleaded not guilty. Meanwhile, the U.S. Securities and Exchange Commission is also reportedly looking into whether Coinbase allowed users to trade unregistered securities.
