QUICK TAKE:

  • Apollo Global Management announced that it has chosen Anchorage Digital to become its custodian for crypto assets

  • As per Apollo, the partnership with Anchorage dates back to the middle of last year i.e. 2021

  • Last year Apollo took part in the Series D investment round for Anchorage

On October 31, Apollo Global Management (APO) published a press release that said it has chosen Anchorage Digital to become its custodian for crypto assets. Further, as per the press release, Anchorage, the first federally authorized crypto bank in the United States, stated that it expects to custody a “significant portion” of Apollo’s digital asset portfolio.

It is worth noting that the decision was made amid a difficult year for the crypto industry. Moreover, Apollo said its partnership with Anchorage dates back to the middle of last year. Notably, it was when the company first started looking into how to best protect its clients’ crypto assets. Although, as per a news agency, APO declined to specify what kinds of crypto assets it now holds.

Apollo’s Investments

Further, the investment firm later took part in the Series D investment round for Anchorage. It was completed in December 2021. Anchorage closed a $350 million Series D funding round which was led by global investment firm KKR.

It is worth noting that Christine Moy, a former executive at JPMorgan will oversee the company’s digital asset strategy. Moy was hired by Apollo in the month of April. Further, Moy will play a crucial role in its investment choices in crypto, blockchain technology, and Web3.

Adam Eling, COO of Digital Assets, Apollo said,

We were drawn to working with Anchorage given their commitment to operating under strict regulatory oversight, their strong emphasis on security and segregation of client assets, and their ease of use for asset managers to hold digital tokens.

Diogo Mónica, Co-Founder and President of Anchorage Digital said,

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.

Recently, Apollo-backed Web3 fund UpsideDAO raised $5 million in funding to invest in web3 projects. Notably, the crypto-focused investment fund is supported by some of the most prominent digital asset venture firms. These firms include Melbourne-based Apollo Capital Management, crypto payments provider Banxa, crypto broker Caleb & Brown, and digital horse racing game Zed Run. Further, the fund invests through a decentralized autonomous organization (DAO), which is simply an entity administered by its community through a blockchain-based voting process.