Blackrock, the world’s largest asset manager, is considering offering crypto trading to its investor clientele.
According to a source familiar with the topic, Blackrock, which manages over $10 trillion (£7.3 trillion) in assets for institutions, aims to join the crypto industry with client support trading and then with their own credit facility. According to reports, clients will be able to trade cryptocurrencies using Blackrock’s integrated investment management platform Aladdin, and investors will be able to use bitcoin as collateral for loans.
While the rumors are unverified, the fund manager has previously shown support for cryptocurrencies. Microstrategy, a business that claims to have over 122,000 bitcoin and whose CEO, Michael Saylor, is a strong crypto enthusiast, has a 16.3% investment in BlackRock. The company has also applied to the Securities and Exchange Commission to trade Bitcoin futures contracts on the Chicago Mercantile Exchange (CME).
Last June, the company started looking for a blockchain strategy head for Aladdin.
Blackrock sources indicated intentions to explore crypto further. According to a source knowledgeable about the topic, BlackRock is interested in going hands-on with outright crypto and is looking at providers in the space.
Inside BlackRock, a working group of about 20 members is analyzing bitcoin and cryptocurrencies, according to a third source. “They see all the traffic that everyone else is getting and want to get in on the action,” the person said.
In the previous year, financial behemoths like Citibank and Morgan Stanley forayed into digital asset research, owing to a surge in investor interest in cryptocurrency.