Asset Management Giant BlackRock to Use Kraken Subsidiary For Crypto Product
The world’s largest asset manager with roughly $10 trillion in assets under management, BlackRock (BLK) is opting to use crypto exchange Kraken's CF Benchmarks’ bitcoin index for its new crypto offering.
Last month, BlackRock teamed with another crypto exchange, Coinbase (COIN) to make bitcoin crypto directly available to its institutional clients. Shortly after, BlackRock launched a spot bitcoin private trust for U.S.-based institutional investors.
“The launch of BlackRock’s bitcoin fund is a sign of how far crypto has matured as an asset-class,” CF Benchmark CEO Sui Chung told CoinDesk. “As the provider of the robust high integrity benchmarks that enable asset managers to properly value their financial products, CF Benchmarks is proud to have played this integral role in helping facilitate the entrance of new investors and capital into the still-nascent asset class,” he added.
CF Benchmarks falls under the Crypto Facilities group of companies, a member of Payward Inc., which owns and operates crypto exchange Kraken. Kraken bought Crypto Facilities in an undisclosed deal valued at least $100 million in 2019.
BlackRock didn’t immediately respond to CoinDesk’s request for comment.
The Block first reported the news Friday.