- BlackRock verifies Bitcoin holdings by running its own blockchain node.
- It checks Bitcoin balances from Coinbase Prime’s wallet nightly.
- Data is available for institutional clients but not made public.
- BlackRock’s long-standing reputation boosts trust in its operations.
BlackRock Leverages Blockchain Nodes to Secure Bitcoin Assets
BlackRock, the world’s largest asset manager, is taking an advanced approach to securing Bitcoin assets. According to a report by BlockBeats, BlackRock has implemented its own blockchain node to independently verify Bitcoin holdings associated with its Institutional Bitcoin Trust (IBIT). This move ensures the safety and accuracy of customer assets by extracting Bitcoin balances from Coinbase Prime’s wallet every night.
Independent Verification of Bitcoin Holdings
BlackRock’s verification process involves running its own blockchain node to access Bitcoin data directly from Coinbase Prime. Each night, the company extracts balances from Coinbase Prime’s wallet addresses and cross-references them with the Bitcoin held by IBIT, its Bitcoin ETF offering. This nightly routine ensures that all Bitcoin assets under its management are properly accounted for, offering an added layer of security for institutional investors.
In response to institutional client requests, BlackRock is willing to share this data privately. However, the company has made it clear that they will not release this information publicly. This decision comes after receiving various forms of spam, such as sanctioned Bitcoin or unsolicited NFTs, which would only escalate if the data were made widely available
