Apollo Global Management, one of the largest asset managers globally, has started offering crypto custody services to its clients. The asset manager will do this through a partnership deal with Anchorage Digital, a digital asset platform.
Apollo Global Management to offer crypto services to clients
Apollo Global Management is one of the world’s largest asset management companies. It is joining the growing list of traditional investors showing a growing interest in the buzzing web 3.0 & crypto industry.
The move comes amid a bearish sentiment across the cryptocurrency sector for most of this year. Bitcoin, the largest cryptocurrency, is down by over 50% since the beginning of the year, and it has also lost almost two-thirds of its value since creating an all-time high in November last year.
The plunging crypto prices have been attributed to the increased concerns from investors on the rising inflation levels. The inflation levels have prompted the US Federal Reserve to increase interest rates several times this year, making risk assets such as cryptocurrencies less attractive to investors.
While speaking on the partnership between Apollo and Anchorage Digital, the President of the digital asset firm, Diogo Mónica, said that the move showed that the crypto sector was here to stay.
This is a very long-term horizon process and technology, and that for the large institutions, it doesn’t really matter that there is volatility short term.
Apollo has not shared any details on the types of cryptocurrencies in its holdings. However, the asset manager said that its partnership with Anchorage Digital commenced mid-last year as the firm started looking into how it can best protect the cryptocurrency assets belonging to its clients.
In December 2021, Apollo was among the companies that invested in a Series D funding round for Anchorage. The chief operating officer for Apollo’s digital asset division, Adam Eling, said that the asset management firm was looking for creative ways to integrate blockchain technology into its services. It looked forward to its partnership with Anchorage to protect clients’ digital assets.
Mónica said there was room to discuss further how the company would expand its relationship with Apollo. If the asset manager extends its crypto division, Anchorage could be at the center of yet another notable deal.
Apollo has made several efforts to adopt crypto services this year. In April, the company hired Christine Moy, a former executive at JPMorgan Chase, to head its digital asset strategy. Moy’s role involved making decisions involving crypto, blockchain, and the entire web3 space.
Large institutions turn their attention toward crypto
Apollo is not the only large institutional player showing interest in crypto. Blackrock, the world’s largest digital asset manager, unveiled a partnership with the Coinbase exchange to ensure that crypto services were directly available to institutional clients.
Through the partnership, it was now possible for customers on Coinbase, and BlackRock’s investment management platform, Aladdin, to access crypto-related services, including trading, custody, and prime brokerage.
Earlier this year, the CEO of BlackRock, Larry Fink, said that the firm was looking into ways to extend digital asset services to its clients. Fink’s statement confirmed that institutional investors were highly interested in the crypto sector.