The Strategist

BlackRock announces partnership with Coinbase

08/08/2022 - 10:59

BlackRock, the largest investment company in the world by assets, and Coinbase, the biggest cryptocurrency exchange in the US, declared that they had entered into collaboration.

Ivan Radic
Ivan Radic
According to the arrangement, BlackRock will use its asset management system Aladdin to enable its institutional investors to trade cryptocurrencies on Coinbase, initially just bitcoins but eventually other cryptocurrencies as well.

Following this news, the price of Coinbase shares increased by more than 40% in NASDAQ trading. However, later on, the price of the shares started to decline, and eventually slumped by roughly 15%.

The announcement of the cooperation with BlackRock was Coinbase's first positive message after a succession of bad news. The cryptocurrency exchange recorded a staff loss of 18% in the past month alone, and U.S. officials have also started looking into it for possible unlawful insider trading and unregistered asset trading.