BlackRock, an American multinational investment management corporation based in New York has unveiled its plans to wade into the digital currency ecosystem. BlackRock is a money manager that specializes in overseeing investments for organizations and boasts of over $10 trillion in its portfolio.
The corporation intends to achieve its crypto trading services by offering targeted products including “client support trading” and “credit facility,” according to details provided by sources close to the matter. This suggests that clients will be permitted to lend from BlackRock making use of their Crypto-assets as collateral.
Proponents of digital currencies have emphasized the benefits inherent in crypto adoption, some of which account for BlackRock’s decision to dive into the space. For one, it charges a lower transaction fee compared to legacy financial systems and offers a transparent payment model with transactions registered on a public ledger.
Sources who are in the know declare that the trading services being planned by BlackRock will occur on the company’s management platform Aladdin (Asset, Liability, Derivative Investment Network, and Debt). This will give such access to clients including; endowment and sovereign wealth funds and public pension schemes, a set of offerings whose delivery timelines have not yet been revealed.
The management’s intentions to engage in crypto trading dates back to as early as June 2021 when it started looking to employ a blockchain strategy lead for Aladdin. The company was also reportedly searching for Engineers experienced in Blockchain technology at the time. On the passive end, BlackRock also owns 16.3% of Microstrategy, a company whose CEO, Michael Saylor hasn’t hidden his advocacy for crypto and his firms’ Bitcoin acquisitions.
BlackRock has already given the market a heads up regarding crypto, not excluding trading CME bitcoin futures. The firm is also planning to launch an Exchange Traded Fund (ETF) that tracks blockchain companies in the U.S and other jurisdictions.
According to the profiled sources, BlackRock’s management was “looking to get hands-on with outright crypto” and was “looking at providers in the space.” It was also noted that there is a working group of “approximately 20 or so” in BlackRock whose sole task is in analyzing crypto, adding that they are aware of the flow everyone is receiving and desire to be a part of it.
Following the investment explosion in crypto, which has seen financial giants like Morgan Stanley, Citibank, and Goldman Sachs, as well as media unicorns like Forbes, move into digital asset research, BlackRock is not willing to be left out.