Abra, a digital assets and wealth management platform, has recently acquired Tron （TRX） and Zilliqa （ZIL） private crypto trusts from Valkyrie Investments. This move comes just before Abra’s settlement with U.S. state regulators.
Points
- Abra purchased Tron and Zilliqa trusts among other crypto trusts from Valkyrie.
- The acquisitions provide Abra an opportunity to expand its DeFi products.
- The trusts could potentially be publicly traded based on market demand.
- Abra settled with U.S. regulators, agreeing to return $82.1 million in cryptocurrencies to customers.
Abra, a prominent digital assets and wealth management platform, has made a strategic acquisition by purchasing Tron （TRX） and Zilliqa （ZIL） private crypto trusts from Valkyrie Investments. This acquisition, reported by Bloomberg, occurred just before Abra’s settlement with 25 U.S. state regulators over charges of operating without required licenses.
Marissa Kim, head of asset management at Abra, highlighted that this move, undertaken by Abra Capital Management LP—a U.S. SEC-registered investment advisor—opens up new opportunities for the platform. Specifically, the acquisition includes Valkyrie trusts for Tron and Zilliqa, along with others that are yet to launch. These crypto private trusts offer Abra Capital Management the potential to expand its spot and decentralized finance （DeFi） products to a broader range of investors.
Kim mentioned that Abra could file to have some of these trusts publicly traded, depending on market demand. Crypto trusts allow an asset manager to hold digital assets on behalf of investors. In this case, shares of TRX or ZIL are tradable in over-the-counter （OTC） markets. However, it’s important to note that these investment assets are not exchange-traded funds （ETFs） and are available only to accredited investors, institutions, or high-net-worth individuals.
The acquisition news comes on the heels of Abra’s settlement with U.S. state regulators in June. The settlement requires Abra to return $82.1 million in cryptocurrencies to U.S. customers due to charges related to unregistered operations in offering crypto assets. This regulatory scrutiny has prompted Abra to pivot and enhance its service offerings, including custody, borrowing, trading, and yield services through Abra Treasury. Customers will retain the title and ownership of their digital assets, verifiable on-chain, accessed via separately managed accounts.
Abra’s acquisition of Valkyrie’s crypto trusts signifies a crucial step in its expansion strategy, aimed at bolstering its presence in the rapidly evolving crypto market. This move aligns with the platform’s vision to offer comprehensive crypto investment solutions while navigating the regulatory landscape effectively.
解説
- Strategic Acquisition: Abra’s purchase of Tron and Zilliqa trusts from Valkyrie Investments is a strategic move to expand its DeFi product offerings.
- Regulatory Compliance: The acquisition coincides with Abra’s settlement with U.S. regulators, indicating a focus on compliance and customer restitution.
- Market Expansion: By potentially filing for public trading of these trusts, Abra aims to attract more investors and enhance market liquidity.
- Enhanced Services: Abra’s focus on providing custody, borrowing, trading, and yield services underscores its commitment to offering diverse financial solutions.
- Future Outlook: This acquisition positions Abra to capitalize on the growing interest in digital assets and decentralized finance.