Coinbase revealed it will back $5 trillion cryptocurrency BlackRock by 2030, a game-changer after Bitcoin, Ethereum and XRP price pump

Below is the update from March 22. This post was originally published on March 20

Bitcoin
BTC
suddenly surged, erasing $100 billion in losses from the cryptocurrency crash that came amid fears that the Biden administration may be trying to “kill” cryptocurrencies.

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Bitcoin's price surged 5% – pushing Ethereum, XRP and the broader cryptocurrency market higher – following the Federal Reserve's decision to leave interest rates unchanged, and Fed Chair Jerome Powell said he could be ready to start making cuts soon – forecasting three including year.

Before the closely watched Fed announcement sent bitcoin prices pumping, the world's largest asset management firm BlackRock
BLK
has quietly revealed that it has already begun the second phase of its plan for a cryptocurrency-based “financial markets revolution” – something that Citi analysts say could become a “$5 trillion market by 2030.”

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Black Rock
BLK
the world's largest asset manager, which kicked off the frenzy to launch a spot bitcoin Exchange Traded Fund (ETF) on Wall Street last year, has filed to launch a tokenized private equity fund in partnership with asset tokenization firm Securitize.

Update 22/03: Coinbase Bitcoin and cryptocurrency exchange

COIN
revealed that it will provide infrastructure support for BlackRock's new fund.

“We are pleased to announce that Coinbase has been selected as a key infrastructure provider for the Blackrock and Securitize tokenized investment fund” – Coinbase Institutional Business sent to X

“This partnership reflects our commitment to connecting institutions with cryptocurrencies and demonstrates our ability to provide the necessary technology and products to support the rapidly growing tokenization sector.”

Coinbase and BlackRock began their collaboration in 2022, and the asset manager used the exchange to provide its institutional clients with access to bitcoin in seen at the time as “a huge milestone in the crypto space” that opened “the gates for institutions to access bitcoin.”

BlackRock's IBIT spot Bitcoin ETF – managed by Coinbase – managed $15.5 billion in assets in just three months, making it one of the fastest-growing ETFs of all time.

The new fund's documentation, filed last week with the U.S. Securities and Exchange Commission (SEC), did not specify what cryptocurrencies or assets it would hold. Ondo Finance, which runs a real-world asset tokenization platform, saw the price of its Ondo coin skyrocket by 40% after news of the filing surfaced.

A cryptocurrency called BlackRock USD Institutional Digital Liquidity Fund (buidl) was created on the Ethereum blockchain earlier this month, according to data spotted by Etherscan. Unit.

The fund appears to have received a transfer of $100 million on March 4. The maximum quantity of Buidl is just 100 coins and only one container.

In January, BlackRock's legendary founder and CEO, Larry Fink, in an interview with CNBC.

“We believe this is just the beginning. ETFs are the first step in the technological revolution in financial markets, Fink said. “Step two is to tokenize each financial asset.”

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Bitcoin and cryptocurrency blockchain technology enables the “tokenization” of traditional assets on a public ledger, potentially making it cheaper and easier to transfer anything from stocks, bonds, real estate and alternative investments such as art.

“Today we have the technology to enable tokenization,” Fink said. “If you have a tokenized security… the moment you buy or sell the instrument, you know it's on a ledger that's put together. This eliminates all corruption by having a tokenized system.”

Last year, BlackRock, JPMorgan and other Wall Street giants quietly began laying the groundwork for the crypto revolution described by Fink – something that could usher in the “next generation of markets.”

“The real game changer for tokenized assets is their ability to increase the agility of financial institutions by developing new products for new markets at a pace that would be impossible with existing technology,” Sergey Gorbunov, founder of the Axelar protocol and CEO of Interop Labs, wrote in comments sent to e.g. -by email.

“The infrastructure is now in place to deliver these benefits across multiple blockchains with the transparency and monitoring as well as the modular customization required to ensure compliance on a global scale.”

Meanwhile, the adoption of bitcoin and cryptocurrencies can begin thanks to the development of real-world asset tokenization.

“Asset tokenization is just one of many potential long-term drivers for web3 [crypto] implementation where the infrastructure has matured to such an extent that it is possible to provide significant advantages over older systems,” Gorbunov said. “You often hear that blockchain use cases haven't emerged, but we believe use cases are well ahead of infrastructure. Now that's starting to change.”