Coinbase partners with BlackRock to expand the use of cryptocurrencies in the market. What does this movement mean for this industry?
The world of cryptocurrencies has become, without a doubt, one of the technologies with the greatest projection in recent years. Such has been the success that it has had that you can now count on courses to learn about them and the technology blockchain on which it is founded. These terms have allowed us to verify how decentralization has become a new way of understanding technology and the world of investment. This, however, collides with what has been experienced in recent months. Despite the effort being made by mining farms.
Falls of more than 70% in all assets has not done more than question the management and risk model of these assets. Can we trust cryptocurrencies again after their collapse in the market? The truth is that, after a few weeks in which a floor or support seems to have been established, the largest investment fund in the world seems to trust these assets again. BlackRock’s alliance with the digital currency trading platform Coinbase only puts the future of this product model into perspective.
Let’s see what this new cooperation strategy can mean for both companies, what capital injection may take place over the coming months and, of course, what other implications can be derived from this new investment policy. What are the main causes that explain this curious agreement? Let’s see in more detail what the operation consisted of.
BlackRock and Coinbaise join forces to guarantee the future of cryptocurrencies
The star measure of this agreement between both entities is directly related to Bitcoin. Institutional clients of the investment company will soon be allowed to buy and sell Bitcoin units. This strategy will allow the development of a new business division to one of the most diversified companies in the world. The full entry into the universe of cryptocurrencies can be a blow to the recovery of these digital currencies, which have seen their price drop dramatically.
Coinbase has reached an agreement with BlackRock to extend the use of cryptocurrencies Bloomberg Line
The trading of cryptocurrencies will be a reality through Aladdin, one of the platforms owned by the BlackRock company. It could be said that it is a kind of outsourcing of the service, since the role that Coinbase will have will be to process the sale and, of course, guarantee the custody of the currencies within its platform. It is a movement that is expected to benefit both parties, since the price of Bitcoin could lead to significant upward movements due to the increase in confidence.
After the news, Coinbase shares have soared on the floor of Wall Street, having produced increases in the listed price of up to 40%. It is, without a doubt, an operation that has made the markets happy. Even more so seeing how the downward trail of the company seemed to have no end. Even so, there is still a long way to go due to the loss of value that has been accumulating since the end of 2021.
The shorts have seized the shareholding of a company that had its best days very soon after going public. Looking back, the truth is that the best decision was not made at that time after everything that had happened in recent months. Be that as it may, we will have to wait a while to see what can happen soon. Will the company get out of this delicate situation thanks to news like this? Very soon we will find out.
Related topics: Web3
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