Coinbase has been chosen by BlackRock as a key infrastructure provider for BlackRock’s latest tokenized investment fund, showcasing a strategic partnership between the leading asset manager and the prominent cryptocurrency exchange.
The fund, also known as BlackRock USD Institutional Digital Liquidity Fund, is a product of a collaboration between BlackRock and Securitize Markets built on the Ethereum blockchain. This project is part of BlackRock’s continuous push into the crypto space and its adoption of tokenized investment solutions facilitated by Coinbase.
The partnership aims to provide institutional clients with access to crypto trading, custody, prime brokerage, and reporting services through Coinbase Prime, with a focus on Bitcoin initially.
Coinbase is a leading American company that operates a cryptocurrency exchange platform, allowing users to securely buy, sell, transfer, and store various cryptocurrencies.
It is renowned as one of the largest cryptocurrency exchanges globally, offering an online platform for individuals and businesses to engage in crypto transactions.
BlackRock is an asset management giant with over $10 trillion in assets under management, making it one of the most significant players in the financial world. BlackRock has shown interest in the blockchain industry by launching a blockchain industry ETF.
The company’s involvement in the crypto space reflects a broader trend among traditional financial institutions to embrace digital assets and blockchain technology.
Securitize is a platform that facilitates the process of securitization, which involves pooling financial assets to create new securities that can be marketed and sold to investors.
The platform enables the issuance and trading of digital asset securities in a fully digital and regulatory-compliant manner.
Securitize allows users to invest in a variety of alternative assets, including startup equity, funds, commodities, real estate, and more.
By creating an account on Securitize, investors can access carefully vetted investment opportunities and participate in capital raises for startups, projects, funds, and other assets.
One key aspect of Securitize is its focus on tokenization, where traditional financial products like equity or debt are represented digitally as security tokens.
These digital asset securities are registered on the blockchain, providing investors with ownership rights that can be easily verified at any time.
Additionally, Coinbase serves as the custodian for BlackRock’s proposed spot Bitcoin exchange-traded fund (ETF), the iShares Bitcoin Trust, demonstrating a significant step towards offering regulated investment products in the crypto sector.
Robert Mitchnick, Head of Digital Assets at BlackRock, expressed enthusiasm for the collaboration, stating, “This is the latest progression of our digital assets strategy.
We are focused on developing solutions that address real problems for our clients, and we are excited to work with Securitize.”
Tokenization remains a focal point of BlackRock’s digital asset strategy, offering investors benefits such as expanded access to on-chain offerings, transparent settlement, and seamless transfers across platforms. BNY Mellon will facilitate interoperability for the Fund between digital and traditional markets.
Carlos Domingo, Co-founder and CEO of Securitize, highlighted the transformative potential of securities tokenization, saying that the news “demonstrates that traditional financial products are being made more accessible through digitization.”
