Blackrock Reportedly Planning To Offer Crypto Trading Services To Clients

Table of Contents

• Big Plans In The Crypto Space 
• Blackrock’s Growing Interest 
• A Hands-On Approach 
• Wall Street’s Growing Interest 

Markets are abuzz after news emerged that Blackrock is making plans to offer clients crypto trading services, according to people familiar with the developments. According to sources, Blackrock would allow clients to trade crypto through its Aladdin Investment platform. 

Big Plans In The Crypto Space 

New York-based Blackrock manages over $10 trillion in assets for major institutions has big plans in the crypto space. Initially, Blackrock plans to enter the crypto space with client support trading and then with their own credit facility. The asset manager’s plans to enter the crypto and Bitcoin space is a significant boost to the world’s largest cryptocurrency, considering the huge profile and portfolio of the institution. 

People familiar with the matter stated that clients of Blackrock will be able to access loans from Blackrock by putting crypto assets as collateral. Blackrock’s list of clients, which includes public pensions, corporate pensions, sovereign wealth funds, and endowments and foundations, will be able to trade Bitcoin through Blackrock’s integrated investment management platform Aladdin (Asset, Liability, Debt and Derivative Investment Network). 

Blackrock’s Growing Interest 

Blackrock has seen its interest in the crypto space grow exponentially. In 2020, Laurence Fink, CEO of Blackrock had stated that there had been a significant uptick in the search volume for BTC on Blackrock’s website was an indication of growing legitimacy. A filing with the Securities and Exchange Commission (SEC) revealed that Blackrock had made its way into investing in BTC through derivatives-based products that were being traded on the Chicago Mercantile Exchange. 

Blackrock had started looking for an Aladdin blockchain strategy lead back in June, further highlighting its growing interest. Blackrock had also outlined plans to launch the iShares Blockchain and Tech ETF, an exchange-traded fund that would consist of companies that were involved in the crypto space, both in the United States and abroad. 

A Hands-On Approach 

According to sources, Blackrock is looking to get very hands-on in the crypto space and is actively looking at providers in the space. Another individual close to the developments revealed the existence of a working group that is evaluating the risks associated with crypto, adding, 

“They see all the flow that everyone else is getting and want to start making some money from this.”

Wall Street’s Growing Interest 

The crypto space is receiving a significant wave of interest from Wall Street and large financial institutions. Several financial institutions such as Morgan Stanley, Goldman Sachs, and Citi are exploring the space and devising strategies. MicroStrategy, of which Blackrock owns 16.3%, has also made considerable investments in BTC, with CEO Michael Saylor regularly talking about the firm’s BTC holdings. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.