World’s Largest Asset Management Company, Launching Crypto Lending and Trading Platform

Following the course of various similar financial firms, the world’s largest asset management company, BlackRock is, reportedly, launching crypto related services.

According to the reports BlackRock is aiming to launch crypto services like “client support trading and then their own credit facility.” Under the credit facility provided by BlackRock entities would be enabled to borrow money through holding their crypto assets with the company as a collateral.

Sovereign wealth funds, public pension organisations, endowments, will also be offered an option to trade cryptocurrency on the platform using BlackRock’s facility, Aladdin, a source claimed.

It has been quite some time now that BlackRock initially tip-toed into the crypto market. As they traded Bitcoin through Chicago Mercantile Exchange (CME), which turned out to be a short-term profitable trade. Later, after a long pause, it was reported in various media outlets that the company owns $400 million worth of shares in multiple crypto mining companies. Recently, as reported by Bloomberg, BlackRock is also planning to launch a crypto-flavoured ETF (exchange traded funds).

Moreover, the sayings of BlackRock’s executives too confirms the organisation’s ambitions in regard to crypto. CEO Larry Fink once stated that the premier cryptocurrency Bitcoin could go on to become a strong asset class and also a threat to the US Dollar. However, Fink noted that Bitcoin still has to prove itself. Further, BlackRock’s CIO Rick Rieder also praised Bitcoin, at Yahoo Finance Live, saying:

“I think it could have some real upside. My sense is there are more buyers than sellers. It’s an asset class that I think is durable,”

US-based, founded in 1988,the BlackRock operates in many finance related sectors. It currently holds $10 trillion worth of assets under management (AUM) and has a revenue of $22 billion, as of 2021.

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