Apollo Global partners with anchor to hold crypto on behalf of its clients
Through a partnership with Anchorage Digital, which happens to be a digital asset platform, Apollo Global Management Inc. has started offering crypto custody services on behalf of its clients through a partnership.
This move is a strategy on the company’s part that will help introduce crypto services to institutional investors.
The market has shown a downward trend for most of this year, and even with bearish sentiments, institutional investors have continued to show interest in cryptocurrencies.
This is a positive move for the crypto ecosystem given how Apollo, as the largest asset manager, is trying to attract institutional investment to the crypto industry.
A recent survey has found that close to 58% of institutional investors have invested in digital assets in the first months of 2022.
There has been a 6% increase in institutional investment from 2021. Another 74% have signaled their interest in buying digital assets in the coming months.
The president of Anchorage Digital has stated that,
It is the confirmation of this incessant drumbeat that is here to stay.
Anchorage Digital mentions that the short-term volatility has not been a major concern for large institutions. These institutions are more focused on long-term and future returns to the crypto industry.
Long-term plans for Apollo related to crypto
Diogo Monica, president of Anchorage Digital, the crypto firm that holds a national trust bank charter from the Office of the Comptroller of the Currency, stated,
This is a very long-term horizon process and technology, and that for the large institutions it does not matter that there is volatility in the short term.
Apollo hasn’t mentioned too much about what kind of crypto assets it has, and it has declined to disclose what kind of assets it has. Apollo’s relationship with Anchorage goes back to mid-2021.
This is when the firm first began to explore how it could work to secure its customers’ digital assets. Apollo later participated in Anchorage’s Series D funding round, which closed in December 2021.
Main plans
A former JPMorgan Chase executive was hired as head of Digital Asset Strategy.
Christine Moy is the former JPMorgan Chase CEO who was supposed to lead the digital asset strategy.
This would be a turning point for the firm’s investment decisions on blockchain, cryptocurrency and also Web 3.
Adab Eling, CEO of Apollo’s digital asset team, mentioned that the team is trying to find innovative ways to integrate blockchain technology into Apollo’s business.
He stated,
We look forward to working with Anchorage for the safekeeping of our customer’s assets.
Meanwhile, Apollo will also release its third quarter 2022 financial results on Wednesday, November 2, 2022, prior to the opening of the New York Stock Exchange for trading.
