Abra Launches ‘Abra Treasury’ for Corporate Crypto Reserves

Abra, a leading digital asset prime services and wealth management platform, has introduced Abra Treasury. This new service is designed for corporates wanting to hold cryptocurrency as a reserve asset. The company announced this initiative in a press release on Monday.

Abra Treasury, operated by Abra Capital Management, an SEC-registered investment advisor, offers a range of digital asset treasury management solutions for corporates, family offices, and non-profits. The service includes custody, trading, borrowing, and yield services, allowing clients to hold their crypto in separately managed accounts. This setup enables clients to retain title and ownership over their digital assets.

Adapting to an Uncertain Macro Environment

In the current macro environment, characterized by high inflation and geopolitical tensions, some corporate treasurers are considering adding Bitcoin (BTC) to their balance sheets. MicroStrategy (MSTR), led by Michael Saylor, is the largest corporate holder of Bitcoin, with 226,331 tokens accumulated since 2020.

Marissa Kim, head of asset management at Abra Capital Management, noted, “A sign of adoption and institutionalization of the digital asset industry has been the increase in non-crypto-native businesses showing interest in using bitcoin as a treasury reserve asset.” She added, “We are increasingly seeing clients that are business owners and CEOs of small to medium-sized businesses (SMBs), in particular real estate companies, with interest in buying BTC for their treasury or borrowing against BTC to finance business needs or real estate projects, which we did not see last cycle.”

In a recent development, Abra and its founder and CEO William “Bill” Barhydt settled with 25 state financial regulators for operating its mobile application without the proper licenses. According to the Conference of State Bank Supervisors (CSBS), Abra will return up to $82.1 million in crypto to U.S. customers in the settling states under the terms of the settlement agreement.