BlackRock, the world’s largest asset manager, showed interest in digital assets a year ago. Now, rumors are circulating that the New York-based company is preparing to launch a cryptocurrency trading offering for institutional clients.
BlackRock, the world’s largest wealth manager with over $10 trillion in assets under management (AuM), first commented on Bitcoin in November 2020. Even back from He spoke himself CIO Rick Rieder is positive about the asset class, which according to him can replace “safe haven assets” par excellence. A few months later, the asset manager submitted prospectuses for two funds that allowed them to buy bitcoin futures contracts. Now BlackRock wants to take it one step further, at least According to three insiders.
Cryptocurrency trading for BlackRock clients
Thousands of the wealth manager’s institutional clients — including corporate and public retirement plans, endowments, and sovereign wealth funds — are said to have access to cryptocurrency trading, according to the plans. In addition, it will also be possible to obtain loans with crypto assets as collateral, similar to what already exists today possible in the DeFi Zone.
After all, BlackRock has been dealing with the asset class for quite some time and is currently vetting several providers in the area. An insider pointed to a working group of about 20 people actively working on a crypto strategy. They admire the massive cash flow in the industry and also want a piece of the pie. BlackRock has so far refused to make official statements about the rumors.
Institutional accreditation is advancing
Recent plans emphasize integrating digital assets into existing institutional financial infrastructure. This can now be seen on various fronts. Particularly in the US, a number of well-known financial service providers offer services related to digital assets. These include cryptocurrency trading, custody and portfolio management offerings. BlackRock doesn’t seem to want to fall behind peers Goldman Sachs, JPMorgan and Wells Fargo, which have all launched similar crypto services over the past year.
Aside from anecdotal examples, the Gradual institutional adoption Measurable based on three factors organization, overall adoption and macro environment. All three areas without exception have improved in the past year. The latest drivers for continued institutional adoption are the recent Bitcoin ETF approvals in the states and the growing fear of one Uncontrollable wave of inflation. The biggest impediment to these developments remains a certain degree of uncertainty regarding asset class regulation.