Apollo Global Management Inc., one of the top asset managers in the world with $515 billion in assets under management, has started storing cryptocurrency on behalf of its clients through a partnership with the digital asset platform Anchorage Digital as part of a significant effort to provide cryptocurrency to institutional investors.
The decision was made amid a challenging year for the cryptocurrency industry, with Bitcoin (BTC) down more than 50% since the start of 2022 due to investors’ growing concern over macroeconomic factors like rising inflation, interest rate hikes, and exchange rates, according to Reuters on October 31.
Apollo said that its cooperation with Anchorage began in the middle of last year when the company started looking into ways to best secure its clients’ crypto holdings.
However, Apollo omitted to disclose the kind of crypto assets it holds. Following that, Apollo joined the Series D financing round for Anchorage, which was completed in December 2021.
Adam Eling, chief operating officer of Apollo’s digital assets team, said:
“As we explore creative ways to apply blockchain technology across Apollo’s business, we look forward to collaborating with Anchorage for the safekeeping of client assets.”
Cryptocurrencies Are Here To Stay
According to Diogo Mónica, president of Anchorage Digital, a cryptocurrency company that has received a national trust bank license from the Office of the Comptroller of the Currency, “[Crypto] is here to stay.”
“This is a very long-term horizon process and technology, and for the large institutions, it doesn’t really matter that there is volatility short term.”
Mónica reported that discussions on how Anchorage Digital can eventually deepen its relationship with Apollo are now taking place in the city.
Related Reading | White House Will Host International Conference To Address Ransomware Threat
Former JPMorgan Chase executive Christine Moy (NYSE: JPM), who joined Apollo in April, was employed by the company. She’ll control the company’s overall digital asset strategy and have a big say in how much money is invested in things like blockchain, Web3, and cryptocurrencies.
However, over 40% of the investors surveyed for Fidelity’s report cited the “great potential upside” of digital assets as the primary reason why institutional investors purchase cryptocurrency.
Comments (No)