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Abra Leads the Way, Introducing Treasury Services for Crypto-Savvy Businesses
In a path-finding move that marks a significant milestone for businesses looking to embrace the cryptocurrency revolution, Abra, a platform specializing in digital asset services and wealth management, has unveiled a new offering. Known as “Abra Treasury,” the service is tailored for businesses looking to include cryptocurrency on their balance sheets as a reserve asset.
Services offered by Abra Treasury
Abra Treasury is operated by Abra Capital Management, an SEC-registered investment advisor. The service combines custody (secure storage of digital assets), trading (exchanging cryptocurrencies), lending (securing loans against cryptocurrency holdings), and yield services (earning interest on crypto assets). This comprehensive service allows clients to securely store their cryptocurrencies in individually managed accounts, ensuring they maintain ownership and control over their digital assets.
Rising Trend of Bitcoin as a Reserve Asset
The current volatile macroeconomic climate, characterized by rising inflation and geopolitical turmoil, has led some corporate treasurers to consider adding bitcoin (BTC) to their capital reserves. MicroStrategy (MSTR), a Nasdaq-listed software company led by Michael Saylor, is largest corporate holder of BTCwith a total of 226,331 tokens.
Non-Crypto-Native Companies Interest in Bitcoin
Marissa Kim, head of asset management at Abra Capital Management, highlighted the growing trend of non-crypto-native firms expressing interest in using Bitcoin as a treasury reserve asset. “We are seeing more and more clients who are business owners and CEOs of small and medium-sized businesses (SMBs), especially real estate companies, interested in buying BTC for their treasury or borrowing against BTC to fund business needs or real estate projects, which we haven’t seen in the last cycle,” Kim said.
Abra Agreement with Financial Regulators
However, Abra’s journey has not been without its challenges.The company and its founder and CEO, William “Bill” Barhydt, recently reached an agreement for a Well with 25 state financial regulators, a Press release from the Conference of State Bank Supervisors (CSBS) said. As part of the settlement agreement, Abra will return up to $82.1 million in cryptocurrency to U.S. customers in states that have entered into the settlement.
Other companies exploring crypto treasury services
Interestingly, Abra is not alone in this arduous quest. In addition to Abra, several other companies are exploring crypto treasury services, recognizing the potential of digital assets as reserves.
Well-known companies like MicroStrategy and Tesla have already made headlines with their significant purchases of Bitcoin. Goldman Sachs, the multinational investment bank and financial services company, is not left out, as it now offers investments in the underlying and derivative markets for cryptocurrencies.
Finally, there is Genesis Trading, a leading digital asset brokerage, which is seeing growing global interest from corporate treasurers for all of its products and services. And the list goes on…
These companies are leading the charge in the new digital economy, accelerating the process of corporate investment in digital assets. As the world of cryptocurrency and banking continues to thrive, they must be ready to meet these new demands.
As the old saying goes, “fortune favors the bold,” and Abra’s bold move could represent a turning point in the way the corporate world views cryptocurrencies.