BlackRock Could Soon Offer Crypto Trading to its Clients
CoinDesk, a crypto and other digital assets related news organization has recently reported that BlackRock, a multinational investment firm, is soon going to enable its clients to trade cryptocurrencies. This is going to be possible through its asset manager’s flagship, Aladdin platform which currently has $10 trillion worth of assets under its management. Aladdin stands for- Asset, Liability, Debt and Derivative Investment Network. It caters to clients that include endowments, sovereign wealth funds, and public pension schemes.
An unattributed source informed CoinDesk about this matter, revealing about the firm allegedly getting involved with crypto a lot and also supposedly looking for “providers in space.” The undisclosed sources mentioned that BlackRock wants to offer its clients with such a service that will enable its clients to not only trade in crypto assets but also borrow fiat money by keeping their crypto assets as a collateral security. Another secret source also reportedly told the CoinDesk that, about 20 employees of BlackRock are studying the crypto industry, to note the “flow of the transactions” as well as looking for ways to “make money out of it.” However, there is no confirmation about the same from BlackRock, and has refused to comment on it either. The sources or even BlackRock did not indicate when the service might be introduced.
Then what gives space to such speculations? It was a few other times earlier that the multinational investment firm had given importance to cryptocurrencies. It was in January last year that the firm had enabled two of its funds to be exposed to Bitcoin futures. A while later, the Global Fixed Income CIO- Rick Rieder commented that BlackRock has started testing in the cryptocurrency industry. But as there is no official confirmation as of now, about when the said service might commence, nothing is confirmed as yet.
Although BlackRock is yet to officially confirm any of these claims, considering a job listing it had posted in the December of 2020, where they were looking for a Blockchain executive, it is sure that the firm is looking to plan something in the Blockchain technology. Also, BlackRock CEO- Larry Fink, had mentioned earlier that though he was interested in Bitcoin in general, there was no demand for the crypto industry in their institutional clients. He had also commented about believing that cryptocurrencies could be a good asset, but also predicted about their possible threat to the US dollar’s stability.
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On the other hand, according to the Securities and Exchanges filings seen in this January, the firm is planning to introduce a blockchain and technology exchange-traded fund, also known as ETF. It is this data that might indicate the organization’s plan to enter the Blockchain world.
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