Abra Launches Abra Treasury for Corporates
Abra, the digital asset prime services and wealth management platform, has launched Abra Treasury, a service designed for corporates seeking to hold cryptocurrencies on their balance sheets as reserve assets. The service, operated by Abra Capital Management, an SEC-registered investment advisor, offers digital asset treasury management solutions to corporates, family offices, and non-profits.
Abra Treasury’s comprehensive offering includes custody, trading, borrowing, and yield services. Clients have the option to hold their crypto in separately managed accounts, ensuring they retain title and ownership over their digital assets.
In the current uncertain macroeconomic environment marked by inflationary pressures and geopolitical tensions, corporate treasurers are increasingly considering adding cryptocurrencies like bitcoin (BTC) to their balance sheets as a reserve asset. Notably, MicroStrategy (MSTR) stands as the largest corporate holder of bitcoin, with a stash of 226,331 tokens, accumulated since 2020.
Marissa Kim, the head of asset management at Abra Capital Management, emphasized the trend towards broader adoption and institutionalization of the digital asset industry. She noted an uptick in interest from non-crypto-native businesses, especially small to medium-sized businesses (SMBs) like real estate companies, looking to integrate BTC into their treasury holdings or leverage BTC for financing needs and real estate projects.
Regulatory Settlement and Compliance
Abra and its founder and CEO, William “Bill” Barhydt, recently settled with 25 state financial regulators for operating their mobile application without the required licenses. The settlement agreement, announced by the Conference of State Bank Supervisors (CSBS), involves Abra reimbursing up to $82.1 million in crypto to U.S. customers in the states where the settlement applies.
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