The collaboration makes it easier for institutional investors – such as banks, insurance companies and pension funds – to trade in bitcoin. With this, the largest asset manager in the world gives crypto coins important support, Bloomberg writes.
Coinbase is the largest US trading platform for cryptocurrencies such as bitcoin, ether and many other so-called altcoins. “The focus will initially be on bitcoin,” Blackrock reports.
According to Bloomberg, the partnership shows that traditional financial industry players are increasingly moving towards crypto and related technologies, even after the major crypto crash in which digital currencies have lost a lot of value in recent months.
Investors on Wall Street reacted positively to the deal with Blackrock. Coinbase’s share rose 38 percent at the opening of the exchange.