BlackRock Could Soon Offer Crypto Trading to Its Clients

Key Takeaways

  • BlackRock has plans to offer its investors crypto trading as well as the ability to borrow money with crypto collateral.
  • Various sources informed Coindesk of these plans. However, BlackRock has not officially confirmed these reports.
  • BlackRock is the world’s largest asset manager, with more than $10 trillion under management from institutional clients.

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The asset management giant BlackRock plans to offer cryptocurrency trading to its clients, according to sources interviewed by Coindesk.

Institutional Clients Will Likely Get Crypto Trading

According to those sources, BlackRock plans to give its institutional clients the ability to trade cryptocurrencies. Those clients would also be able to borrow money using crypto as collateral.

One source suggested that BlackRock will offer the service on its Asset, Liability, Debt and Derivative Investment Network, or “Aladdin.”

Another source provided further details of BlackRock’s plans, claiming that the firm aims to get “hands-on with … crypto” and that it is “looking for providers in the space.”

The third source said that about 20 BlackRock employees are currently investigating cryptocurrency and opined that those employees “see all the flow that everyone else is getting,” adding that “they want to start making some money from this.”

The sources did not indicate when the service might be introduced.

BlackRock Is Interested In Crypto

BlackRock has not confirmed those reports. However, it is known that the firm is considering blockchain. The firm began searching for a blockchain strategy lead for Aladdin last June. Prior to this, it posted job listings seeking a blockchain executive in December 2020.

While the CEO of BlackRock, Larry Fink, has said before that he was “fascinated” by Bitcoin, he has been quick to mention the lack of demand for cryptocurrency among institutional clients. Meanwhile, BlackRock Managing Director and Chief Investment Officer, Rick Rieder, called Bitcoin more functional than gold in November 2020.

The company is also apparently planning to launch an ETF that tracks blockchain companies, according to SEC filings seen in January.

BlackRock is the world’s largest asset management company, with more than $10 trillion in assets under management. Its clients include endowments, sovereign wealth funds, and public pension schemes.

Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and several other cryptocurrencies.

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