Another major institution is adding crypto offerings. Asset management giant Apollo Global Management (APO) announced Monday it had partnered with infrastructure provider Anchorage Digital to offer cryptocurrency custody services for its clients. Crypto unicorn Anchorage is the first federally chartered crypto bank. It released full-stack API infrastructure service last week.
Apollo specializes in alternative assets and has more than $500 billion under management. It participated in Anchorage’s $350 million funding round from last December that was led by KKR (KKR). And because Anchorage focuses on institutional players, the partnership made sense.
“We were drawn to working with Anchorage given their commitment to operating under strict regulatory oversight, their strong emphasis on security and segregation of client assets, and their ease of use for asset managers to hold digital tokens,” Adam Eling, COO of Digital Assets at Apollo Global Management, said in the announcement.
“Apollo is a leader in the alternatives industry. So their use of Anchorage’s custody platform is incredibly validating,” said Diogo Monica, Anchorage co-founder and president. “We expect this collaboration can set the bar for how institutions work with regulated digital asset banks like Anchorage to provide custody and other services for their crypto holdings.”
Apollo Charts Its Crypto Path
The deal could be the first step in a larger partnership. The custody integration unlocks the doors for Apollo to offer other digital asset services, Anchorage told IBD.
“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,” Eling added in the release.
Anchorage Digital provides crypto infrastructure to institutions. And it’s “Build With Anchorage” service provides all-encompassing access to a range of crypto offerings.
The company has raised over $3 billion in funding from Andreessen Horowitz (a16z); GIC, Singapore’s sovereign wealth fund; Goldman Sachs (GS); and Visa (V).
Anchorage believes the current bear market is an excellent opportunity to crystallize its goals. And in a recent interview with IBD, Monica said he expects institutional adoption and investment in digital assets to continue, even during the downturn.
APO stock edged down slightly during Monday trading after the announcement. Apollo shares are down nearly 23% so far this year.
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