MarketCrypto Market

Rumours Get out suggest BlackRock will soon offer Cryptocurrency Trading

As rumours say, the world’s largest asset manager,BlackRock, is getting ready to offer cryptocurrency trading services to its more than 15,000 institutional clients. This acceptance of private currencies by one of the world’s most prominent financial institutions is a watershed moment that promises to bring more credibility to the crypto world. 

According to three people, BlackRock,

the world’s largest asset manager, is planning and in the process of preparing to offer a cryptocurrency trading service to its investor clients. The New York-based company that manages over $10 trillion in assets for institutions is planning to enter the cryptocurrency space with “client support trading and then with their credit facility”, said one of the three informants, with their knowledge of the plans. If put simply, this means that the clients will borrow from BlackRock through pledging crypto assets as collateral. 

Another one of the informants said

that the company would also permit its clients, including public pension schemes, endowments, and sovereign wealth funds, to trade cryptocurrency through “Asset, Liability, Debt and Derivative Investment Network”, or in other words, Aladdin, which the asset manager’s integrated investment management program. However, the period regarding the launching and official updates of this service is unclear. 

BlackRock may have been indirectly communicating its intentions about such a service as early as June when it began looking out to hire an Aladdin blockchain strategy lead. Since the boom of cryptocurrency, it is now assumed to be a given thing that Wall Street Banks and large financial institutions are finding their way to incorporate and get themselves familiar with crypto, with the likes of Goldman Sachs, Morgan Stanley and Citi carefully choosing strategies. 

The asset manager previously sent into

the market its positive take on crypto, including trading CME bitcoin futures, according to a filing with the U.S. Securities and Exchange Commission. The decision-makers in the company also have deliberated on plans to launch the iShares Blockchain and Tech ETF, an exchange-traded fund tracking an index composed of the companies involved in crypto technologies, both in the U.S. and abroad. 

It is also known that BlackRock even owns

16.3 per cent of MicroStrategy, whose CEO, Michael Saylor, has been seen regularly broadcasting news about his firm’s bitcoin holdings.  The second person with the knowledge of these plans reported that BlackRock was “looking to get hands-on with outright crypto” and also was “looking at providers in the space”. To this, the third person providing the information hinted towards a group of “approximately 20 or so” inside BlackRock that is evaluation crypto”, adding to which, they also said, “They see all the flow that everyone else is getting and want to start making some money from this.” The reports, however, remain unconfirmed on the same. The asset manager has also filed with the SEC to trade Bitcoin futures contracts on the Chicago Mercantile Exchange. There are hints at plans to experiment further with crypto. 

Also Read: RBI Chief Warns Citizens Against Cryptocurrency

Related Articles

Back to top button