Digital asset prime services and wealth management platform Abra has introduced Abra Treasury, a service tailored for corporations looking to hold cryptocurrencies as reserve assets on their balance sheets.
The service offers a wide range of digital asset treasury management solutions to corporates, family offices, and non-profits, as stated in a Monday press release.
Abra Treasury, managed by Abra Capital Management, an SEC-registered investment advisor, integrates custody, trading, borrowing, and yield services.
Clients can securely hold their cryptocurrencies in separately managed accounts. This ensures they retain ownership and control over their digital assets.
Corporate Treasurers Explore Bitcoin
With ongoing macroeconomic uncertainties, including rising inflationary pressures and geopolitical tensions, corporate treasurers are increasingly considering Bitcoin (BTC) as a reserve asset.
MicroStrategy (MSTR), a Nasdaq-listed software firm led by Michael Saylor, holds the largest corporate Bitcoin reserve. They have accumulated 226,331 tokens since 2020.
Marissa Kim, the Head of Asset Management at Abra Capital Management, emphasized the growing interest among non-crypto-native businesses in using Bitcoin as a treasury reserve asset. She noted a surge in business owners and CEOs of small to medium-sized enterprises, particularly real estate companies. These businesses are looking to purchase BTC for their treasuries or use BTC as collateral for business needs and real estate projects.
“We are seeing more clients, especially CEOs of small to medium-sized businesses (SMBs), including real estate companies, interested in buying BTC for their treasury or borrowing against BTC for business needs or real estate projects,” Kim stated.
Recently, the company and its founder and CEO, William “Bill” Barhydt, settled with 25 state financial regulators. The Conference of State Bank Supervisors (CSBS) announced a settlement requiring Abra to reimburse up to $82.1 million in cryptocurrency to customers in the settling states.
Metaplanet Adopts MicroStrategy’s Bitcoin Strategy
MicroStrategy’s successful Bitcoin strategy has inspired other public companies to consider adding Bitcoin to their balance sheets.
In April, Metaplanet announced its decision to incorporate Bitcoin into its treasury assets to reduce exposure to the Japanese yen. The yen has been affected by Japan’s low-interest-rate environment.
In a shareholder update, Metaplanet expressed concerns about the yen’s vulnerability. They highlighted Bitcoin’s potential as a hedge against inflation, a tool for macroeconomic resilience, and a source of long-term capital appreciation.
Major corporate investors in Bitcoin, including MicroStrategy, have already seen significant profits. According to data from Saylortracker, at current market prices of around $67,000, MicroStrategy’s Bitcoin holdings are valued at over $14.59 billion. This reflects an unrealized profit of nearly $6.5 billion, a gain of almost 104% year-to-date from an investment started under Saylor in 2020.
The post Abra Launches Abra Treasury, Enabling Corporates to Hold Crypto as Reserve Assets appeared first on Cryptonews.
