BlackRock and Coinbase Have Partnered - This is Big

BlackRock’s recent partnership announcement with Coinbase is a significant move that proves traditional finance truly is ready for crypto allocation.

The move signifies that other firms such as Edward Jones, Wellington Management, Charles Schwab, Morgan Stanley, and State Street could further open the door to investing in crypto in order to remain competitive.

It is an interesting timing of the announcement that came about in this partnership deal as investors are looking for signs of a bottom in the crypto market.

The new BlackRock and Coinbase partnership could be a move that the industry looks back on one day as a game-changer that accelerated market recovery because of the absolute game-changer of the deal. Let's take a look at just how significant it is.

The Partners Are Huge

The first significant factor in this news comes from the players involved, BlackRock and Coinbase are both the largest in the US at what they do.

BlackRock - The Largest Asset Manager

BlackRock is unquestionably the world’s largest asset manager with $10 trillion in assets under management and a company that clearly wants to offer crypto access to its clients.

Aladdin, the investment platform from BlackRock will be integrating with Coinbase to provide trading, custody, prime brokerage, and reporting capabilities for clients wanting exposure to crypto assets.

Coinbase - The Largest US Crypto Exchange

With more than 73 million users trading over $300 billion worth of cryptocurrency every quarter during the last bull market, Coinbase has the second-highest trade volume of all exchanges globally and is the largest exchange in the United States.

Coinbase’s (COIN) stock was riding much higher on the day of the news and has gone up roughly 53% since the news broke regarding the new partnership, and will likely be considered a very positive endorsement as the industry matures.

A Positive Setup for Time to Market & Regulation

BlackRock appears to be speeding up its coverage of crypto through this partnership instead of building out such services themselves. The time to market is minimized through the partnership and will make investing in crypto a reality for clients who want to allocate through BlackRock.

Development of new services - from hiring personnel to implementing new technology can take a considerable amount of time - so the integration of Coinbase's current offerings to BlackRock's Aladdin is certain to help bring quicker access to crypto's fast-moving markets.

There also come a significant amount of influence that BlackRock has as the largest asset manager. The sheer size of assets under management will likely assist in positive regulation of the up-and-coming crypto markets for institutional investors.

There is no doubt that the importance of this new deal will be felt in the coming weeks and months ahead as the markets continue to absorb the significance of this large partnership.