By George Ward
Apollo Global, a global asset manager with AUM (assets under management) worth over $515 billion, has unveiled a crypto custody service for institutional investors. Apollo partnered with Anchorage Digital, a digital asset firm, to offer this service to its clients.
This decision comes despite the bearish season in the crypto market. Since the start of 2022, all digital currencies, including BTC, have dropped by over 50%.
The asset manager said the collaboration with Anchorage began in 2021 when Apollo sought protection for its clients’ crypto holdings.
Afterward, Apollo participated in Anchorage’s fundraising round, a Series D fundraising event, last December. Adam Eling, the COO (chief operating officer) of Apollo’s crypto asset team, said:
“We are happy with our latest partnership with Anchorage. Also, the company shall continue to explore more ways to employ blockchain technology. Apollo hopes to partner with Anchorage for more digital asset services.”
Meanwhile, Anchorage Digital’s President Diogo Mónica commented on the recent partnership. She said, “cryptocurrency is here to stay. However, she added that large institutions are not anxious if there is short-term volatility in the market.
Why Institutional Investors Keep Investing In Crypto
The Apollo President said that Anchorage is currently deliberating on possible future expansions. The digital asset firm wants to expand its partnership with Apollo to offer more services.
In April, Apollo hired a past executive at JPMorgan Chase, Christine Moy. Moy has to develop a crypto asset strategy for the organization.
Moy’s role has a significant effect on the company. For example, it influences Apollo’s investment decisions on Web3, blockchain, and cryptos.
According to reports, most institutional investors buy digital currencies because of the high potential upside. For example, a study by Fidelity revealed that 40% of such investors bought crypto because it has a high potential. Another study confirmed this survey result.
Furthermore, Bloomberg MLIV Pulse surveyed professional investors and the crypto sector. The result revealed that 56% of professional investors still want to venture into crypto. This is surprising given the intense legal scrutiny the US SEC is aiming at the sector.