American private equity firm Apollo Global Management has reportedly partnered with crypto platform Anchorage Digital. According to an announcement on Monday, Anchorage, a U.S. crypto bank will store the majority of the digital assets that the company manages for its clients.
Through the mentioned collaboration with cryptocurrency custodian platform Anchorage Digital, $500 billion asset manager Apollo Global Management has broadened the reach of its cryptocurrency service.
Apollo already in relationship with Anchorage
Without any disclosure of details about the assets it holds, the private equity firm claimed that its cooperation with Anchorage began in the middle of the last year when the company began looking into ways of how to protect its customers’ crypto holdings. Apollo joined the Series D fundraising round for Anchorage, which was completed in December 2021.
Adam Eling, chief operating officer of Apollo’s digital asset team, commented on the latest partnership by stating:
“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.”
Christine Moy, a former executive in charge at JP Morgan has reportedly joined Apollo in April to lead the digital asset strategy at the investment firm while Morgan was also looking for a role to help expand its institutional payments business into new markets like cryptocurrencies, Web 3.0, and the metaverse. At the time, a source reportedly said it’s doubtful that the company will buy bitcoin, even though Moy will help the company invest in web3 and blockchain initiatives.
It’s interesting to note that the decision is made during a difficult year for the cryptocurrency industry, with Bitcoin (BTC), the industry’s leading digital asset, down more than 50% since the start of 2022 which, according to Reuters, is due to the investors’ growing concern over macroeconomic factors like rising inflation, interest rate hikes, and exchange rates.