Apollo Global Management Inc (APO.N), one of the world’s prominent asset management firms, has embarked on a significant initiative to embrace cryptocurrency on behalf of its clientele in collaboration with Anchorage Digital, a digital asset platform. This move marks a bold stride towards introducing cryptocurrencies to institutional investors, despite the tumultuous landscape the crypto market has experienced over the past year. Notably, Bitcoin, the foremost digital asset, has witnessed a decline exceeding 50% since the inception of 2022. This decline has been attributed to heightened apprehensions stemming from surging global inflation.
Diogo Mónica, the President of Anchorage Digital, reflected on the development, stating, “It’s the validation of this incessant drumbeat that [crypto] is here to stay.” Anchorage Digital, a crypto firm that operates under a national trust bank charter from the Office of the Comptroller of the Currency, has partnered with Apollo Global Management for this endeavor. Mónica highlighted the enduring nature of the crypto industry, characterizing it as a long-term process and technology that can weather short-term volatility, especially for large institutions.
Apollo’s engagement with Anchorage traces back to the middle of the previous year, marking the genesis of their collaboration. This partnership was initially driven by Apollo’s intention to identify optimal means of safeguarding the cryptocurrency holdings of its clients. Later in December 2021, Apollo actively participated in Anchorage’s Series D funding round, cementing the foundation of their cooperation. While the specifics of the crypto assets held by Apollo remain undisclosed, the partnership underscores their commitment to exploring the benefits of blockchain technology.
Adam Eling, the Chief Operating Officer of Apollo’s digital assets team, expressed enthusiasm for the alliance with Anchorage. He articulated, “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.” The partnership not only serves the immediate objectives of secure crypto asset management but also sets the stage for potential expansion of the relationship in the future. Mónica indicated that Anchorage is actively engaged in discussions to explore avenues for deeper collaboration with Apollo down the line.
To bolster their digital asset endeavors, Apollo welcomed Christine Moy, a former executive from JPMorgan Chase, in April. Moy’s appointment is integral to the firm’s strategic approach to digital assets. She is poised to lead the formulation of digital asset strategy across Apollo’s diverse business verticals. Additionally, she will play a pivotal role in the organization’s investment decisions concerning cryptocurrency, blockchain technology, and the decentralized internet variant known as Web3.
This step taken by Apollo Global Management showcases the growing recognition of cryptocurrency’s permanence and potential among major financial institutions. The collaboration with Anchorage Digital, founded upon a foundation of trust and innovation, signifies the importance of safekeeping and harnessing the potential of digital assets in the evolving landscape of financial services. Despite the recent volatility that has gripped the crypto market, Apollo’s commitment to exploring blockchain technology and cryptocurrencies underscores the industry’s capacity to reshape the future of finance. As institutions like Apollo venture into the crypto realm, the broader financial landscape is poised to experience transformational shifts that could redefine investment strategies and reshape the very foundations of traditional finance.
