Blackrock Launches Bitcoin Private Trust

24 August 10:23

[TL;DR]
- Blackrock, one of the largest asset managers in the world, announced in a blog post an offering of private trust options to their institutional clients in the United States.

- This is following an earlier comment by Lary Fink, CEO of Blackrock, about their clients’ increased interest in digital assets like stablecoins and blockchain technologies.

-the announcement was made after its partnership with Coinbase to connect its Aladdin platform.

- Although Blackrock's clients have concerns about the environmental implications of bitcoin mining, their earlier hostility towards the cryptocurrency has lessened over time.

- To facilitate their foray into cryptocurrency, Blackrock has signed a crypto buying partnership agreement with Coinbase.

Blackrock Launches bitcoin Private Trust to institutional Clients.

Source: Aol.com

Blackrock, America's and the world's largest asset manager, made a brief press release via a blog post concerning the intentions to launch bitcoin's private trust for the benefit of its institutional client. The announcement is trailing an earlier one about the $10 trillion asset manager’s move of allowing its Alladin Asset Management users access to Coinbase Prime.

This is despite the turbulence bitcoin faced in the capital market in recent times. According to market data, the cryptocurrency fell below 50% to $20 million in June. Currently, it is still 60% below its all-time high of $69 million, although it has risen to about $24,700 since its fall in June, at the time of writing. Suffice to say that the crash has not doused their clients' enthusiasm for the acquisition of crypto assets. According to the press release, there has been “substantial interest” from some institutional clients on how to effectively and efficiently access these technologies.

BlackRock Aladdin Users get access to Coinbase Brokerage.

In furtherance of their aim, Blackrock has entered into a partnership with Coinbase to smoothen the process of purchase of bitcoins and other blockchain assets in the nearest future.

Aladdin is BlackRock’s portfolio and risk management platform. The Aladdin platform will then serve as a means for Coinbase Prime to offer customers trading, prime brokerage, custody, and reporting capabilities on bitcoin to Aladdin's institutional client base.

Blackrock and the Environmental Implications of bitcoin Mining

Before now, Blackrock’s investors had expressed an earlier distaste for cryptocurrency mining stating its attendant environmental implications due to the amount of fossil fuel required to run its process. According to the findings of Ernst & Young, 74% of institutional investors will divest from companies with “poor environmental, social, governance performance”. To forestall such an occurrence, the firm hopes to explore the possibility of “permissioned blockchains, stablecoins, crypto assets, and tokenization”, as stated in the press release, through a process of crypto de-carbonization.

Conclusion

In times past, some companies have publicly denounced bitcoin mining for environmental reasons but went ahead to accept the cryptocurrency in its transactions. A good example is Tesla, an automobile company announced to be in partnership with Blockstream, a cryptocurrency miner.

In the light of this, it is hoped that Blackrock is not only paying lip service to its plans for decarbonized cryptocurrencies and blockchains.

Author: Gate.io Observer: M. Olatunji
* This article represents only the views of the observers and does not constitute any investment suggestions.
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