BlackRock is Reportedly Ready to Offer Crypto Trading Services

Asset manager BlackRock may soon start offering crypto trading services if people familiar with the matter are believed. 

Per Coindesk‘s report, three of those in the know have claimed that the world’s largest asset manager will soon start offering Bitcoin trading services to its clients.

BlackRock to Begin Crypto Trading

If this should happen, it would represent a landmark moment for the burgeoning crypto space. As the largest asset manager, BlackRock manages over $10 trillion worth of assets for its clients. It has over 1500 institutional clients ranging from sovereign wealth funds to public and corporate pensions.

According to close sources who’d rather remain anonymous, BlackRock would let clients use cryptocurrency as collateral for loans through client support trading and its credit facility. 

They also would be able to trade Bitcoin using the New York-based firm investment software, Alladin.

Another of those familiar with the matter added that the firm had established a working group of around 20 people. This group evaluates Bitcoin and other digital assets on how the firm could profit from the space.

BlackRock’s Previous Pro-crypto Moves

Already, BlackRock has made several moves showing its interest in cryptocurrency. Last year, Reuters reported that the firm’s CEO, Larry Fink said that the asset manager was studying Bitcoin to see if it could offer countercyclical benefits. 

He also compared Bitcoin to Gold, stating that it has the potential to be a key asset class for long-term investments.

The firm also explored Bitcoin investments in 2021 with derivatives-based products on the Chicago Mercantile Exchange (CME). Also, being one of the major shareholders in the largest corporate holder of Bitcoin, MicroStrategy, its decision to go into Bitcoin trading is not entirely surprising.

A previous FXEmpire report revealed that the company had filed for a blockchain exchange-traded fund (ETF) to invest in companies within the blockchain and crypto technology space

After a rocky start to the year, Bitcoin’s price has gradually shed the losses it accrued earlier into the year. The asset is currently trading for $44,000 after rising by over 20% within the last 14 days.