$500B Asset Manager Apollo Launches Bitcoin Custody for Institutional Clients
As part of a major effort by one of the world’s leading asset managers to offer cryptocurrency to institutional investors, Apollo Global Management Inc., with $515 billion under management, has begun storing crypto on behalf of its clients via a relationship with the digital . asset platform Anchorage Digital.
Interestingly, the decision comes amid a challenging year for the crypto sector, with Bitcoin (BTC), the flagship digital asset, down more than 50% since the start of 2022, as investors have become increasingly concerned about macroeconomic conditions such as rising inflation, interest rate hikes and exchange rates, Reuters reported on October 31.
Apollo, which declined to disclose what kind of crypto assets it owns, said its partnership with Anchorage dates back to the middle of last year when the business began investigating how best to protect its customers’ crypto holdings. After that, Apollo became involved in Anchorage’s Series D fundraising round, which closed in December 2021.
Adam Eling, managing director of Apollo’s digital assets team, said:
“As we explore creative ways to use blockchain technology across Apollo’s operations, we look forward to working with Anchorage for the safekeeping of client funds.”
Crypto’ is here to stay’
Meanwhile, Diogo Mónica, president of Anchorage Digital, a crypto firm that holds a national trust bank charter from the Office of the Comptroller of the Currency, stated:
“It is the confirmation of this incessant drumming which [crypto] is here to stay. This is a very long-term horizon process and technology, and for the large institutions it doesn’t matter that there is short-term volatility.”
Mónica said conversations are underway in Anchorage about how Anchorage Digital can further expand its involvement with Apollo in the future.
In April, Christine Moy, a former JPMorgan Chase (NYSE: JPM ) executive, was hired by Apollo. She will be responsible for digital asset strategy across the company and will play a significant role in the company’s investment decisions related to cryptocurrencies, blockchain and Web3.
Last week, Finbold reported that the majority of institutional investors are buying crypto because of its “high potential upside,” with over 40% of investors interviewed in Fidelity’s study citing the digital asset’s high potential upside.
Finally, another study produced similar results, with a Bloomberg MLIV Pulse survey reporting that 56% of professional investors are still keen to venture into crypto, despite the United States Securities and Exchange Commission (SEC) intensifying its legal activities in the space.
