News
Abra Launches Treasury Service for Companies Looking to Hold Cryptocurrencies — TradingView News
Abra, the premier digital asset and wealth management services platform, has launched Abra Treasury, a service for companies that want to hold cryptocurrencies on their balance sheet as reserve assets, the company said in a press release on Monday.
The service will be operated by Abra Capital Management, an SEC-registered investment advisor, and will provide corporations, family offices and non-profit organizations with a range of digital asset treasury management solutions.
Abra Treasury’s offering combines custody, trading, lending and yield services, and customers can hold their cryptocurrencies in separately managed accounts, allowing them to maintain title and ownership over their digital assets, the company said.
The current uncertain macro environment, characterized by increased inflationary pressures and rising geopolitical tensions, has forced some corporate treasurers to consider adding bitcoin {{BTC}} as a reserve asset on their balance sheets.
MicroStrategy MMSTR is the largest corporate holder of bitcoin, with a stash of 226,331 tokens. The Nasdaq-listed software company led by Michael Saylor began accumulating the oldest cryptocurrency in 2020.
“One sign of the adoption and institutionalization of the digital asset industry has been the increase in non-crypto-native companies showing interest in using bitcoin as a treasury reserve asset,” said Marissa Kim, head of asset management at Abra Capital Management.
“We are seeing more and more clients who are entrepreneurs and CEOs of small and medium-sized enterprises (SMEs), especially real estate companies, interested in purchasing BTC for their treasury or borrowing BTC to finance business needs or real estate projects, which we have not seen in the last cycle,” Kim said in the release.
Abra and its founder and CEO William “Bill” Barhydt have settled with 25 state financial regulators to operate its mobile application without the proper licenses, according to a Wednesday announcement from the Conference of State Bank Supervisors (CSBS). Under the terms of the settlement agreement, Abra will return up to $82.1 million in cryptocurrency to US customers in settlement states.