The world’s largest asset manager BlackRock, Inc. (NYSE:BLK) is reportedly preparing to launch a cryptocurrency trading service for investors.
What Happened: According to a report from CoinDesk, sources close to the matter said the asset manager plans to enter the crypto space with “client support trading and then with their own credit facility.”
Essentially, clients would be able to borrow from BlackRock using their crypto assets as collateral.
The report also revealed BlackRock clients will be able to trade cryptocurrency through its integrated investment management platform Aladdin - short for Asset, Liability, Debt, and Derivative Investment Network.
CoinDesk sources said BlackRock was “looking to get hands-on with outright crypto” and was “looking at providers in the space.”
“They see all the flow that everyone else is getting and want to start making some money from this.”
Why It's Important: Over the last year, a number of heavy-weight financial institutions have started operations centered around cryptocurrency offerings.
Last year, Goldman Sachs Group Inc (NYSE:GS) said it was preparing to offer the “full-spectrum” of investments, including physical Bitcoin (CRYPTO: BTC), derivatives, and traditional investment vehicles.
Analysts at the firm predicted that BTC could reach a price of $100,000 by capturing a significant proportion of market share from traditional “store of value” assets like gold.
Price Action: As of Thursday morning, Bitcoin was trading at $44,700, up 2.6% in the last 24 hours.
