Apollo Global Management APO, which has more than $500 billion under management, is entering the cryptocurrency custody market.
The asset manager is partnering with digital assets marketplace Anchorage Digital, which will hold a significant amount of Apollo’s cryptocurrency portfolio.
Apollo Digital Assets COO Adam Eling praised Anchorage for its commitment to operating under strict regulatory oversight, the strong emphasis on security and segregation of client assets, and the firm’s ease of use for asset managers to hold digital tokens.
“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 said in a statement.
Following BlackRock’s partnership with Coinbase for Bitcoin BTC/USD trading and custody in August, Apollo’s entry into the digital assets market represents another significant entry into the space from a prominent player in the asset management industry.
Fidelity, one of the first significant financial institutions to enter the Bitcoin market in 2018, made Ethereum ETH/USD trading available to institutional clients.
The collaboration between Apollo and Anchorage began more than a year ago. Apollo began looking into the best ways to protect clients’ cryptocurrency assets.
Later, the asset management firm participated in Anchorage’s $350 million Series D investment round in December.
“Apollo is a leader in the alternatives industry, so their use of Anchorage’s custody platform is incredibly validating, and 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,” Anchorage co-founder Diogo Mónica said.