Apollo (NYSE: APO), one of the largest private equity and asset managers in the world, has custodied its first digital assets with Anchorage Digital, according to a company statement. Apollo currently has a market cap of over $33 billion.
A growing number of banks and establishment financial services firms are moving into digital assets due to demand and expectations for greater interest in crypto going forward.
Anchorage is the first and only, digital asset bank that works with banks and other firms to enable participation in the digital asset ecosystem. Anchorage holds a federal bank charter and is a qualified custodian to hold crypto.
Apollo is also an investor in Anchorage, having participated in its Series D funding round when Anchorage raised $350 million at a $3 billion valuation. The round was led by KKR but included many big names including Apollo.
Diogo Mónica, co-founder and Presiden of Anchorage, said that Apollo is a leader in the alternative investment industry, and their utilization of his bank is “incredibly validating.”
“We expect this collaboration can set the bar for how institutions work with regulated digital asset banks,” said Mónica, adding that being both secure and nimble do not need to be mutually exclusive, and this partnership will prove that.
Adam Eling, COO of Digital Assets at Apollo, said they were drawn to Anchorage as they are operating under strict regulatory oversight.
“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,” said Eling.