Anchorage Digital Bank, a San Francisco-based technology firm specializing in digital asset custody, has partnered with asset management company Onramp Invest, based in San Diego. This collaboration aims to assist registered investment advisors in buying and selling cryptocurrencies on behalf of their clients.
Both companies believe that Anchorage’s banking license and Onramp’s network of wealth management specialists will provide the stability needed to convince cautious investors to enter the cryptocurrency market. As part of this partnership, Anchorage Digital Bank offers block transactions that enable investment advisors to buy and sell large quantities of digital assets for all their clients. The goal of this product is to maximize efficiency, minimize costs, and provide fair order execution for clients.
The partnership between Anchorage Digital Bank and Onramp Invest allows investment advisors to invest in cryptocurrencies held by Anchorage Digital, which is a qualified custodian. Transactions are conducted through the bank’s subsidiary, Anchorage Hold.
This partnership aims to increase institutional presence in the digital asset class, expand access to cryptocurrencies, and contribute to the development of the cryptocurrency market. Nathan McCauley, co-founder and CEO of Anchorage Digital, said, “Anchorage Digital was created to bring greater institutional participation to the digital asset class, and our partnership with Onramp Invest helps achieve this goal by expanding access and ecosystem development.”
Block transactions not only allow for the purchase and sale of larger volumes of digital assets but also ensure greater privacy as they are typically conducted between parties rather than through exchanges. “Safely storing clients’ cryptocurrencies with a qualified custodian” is important due to the uncertainty surrounding the SEC’s proposed extension of custody rules for investment advisors, McCauley added.
Recent regulatory changes, such as Anchorage Digital obtaining a banking license and the SEC’s approval of Bitcoin-related ETFs, indicate that cryptocurrencies are here to stay, and secure methods of investing in them continue to attract institutional and consumer interest, McCauley further commented.
While the cryptocurrency market is still evolving, financial advisors strive to stay informed about cryptocurrencies as consumer interest grows. However, banks and other institutions remain hesitant to engage with digital assets, even regarding Bitcoin-related ETFs, due to increased regulation and other factors.
In conclusion, both investment advisors and bank management will proceed cautiously as cryptocurrency regulations continue to evolve, aiming to provide access to financial tools that advisors are accustomed to but tailored to this new field, said Eric Ervin, CEO of Onramp Invest.
FAQs
1. What is the partnership between Anchorage Digital Bank and Onramp Invest?
The partnership aims to assist registered investment advisors in buying and selling cryptocurrencies on behalf of their clients by offering block transactions and investing in cryptocurrencies held by Anchorage Digital, which is a qualified custodian.
2. What benefits does the collaboration bring to investment advisors and their clients?
The collaboration allows investment advisors to efficiently buy and sell significant amounts of digital assets, minimizing costs and ensuring fair order execution for clients.
3. What are the goals of the partnership between Anchorage Digital Bank and Onramp Invest?
The partnership aims to increase institutional presence in the digital asset class, expand access to cryptocurrencies, and contribute to the development of the cryptocurrency market.
4. What are the advantages of block transactions?
Block transactions allow for the sale and purchase of larger volumes of digital assets and provide greater privacy, as they are typically conducted between parties rather than through exchanges.
5. Why is secure custody of cryptocurrencies with a qualified custodian important?
Securing clients’ cryptocurrencies with a qualified custodian is crucial due to the uncertainty surrounding the SEC’s proposed extension of custody rules for investment advisors.
6. What regulatory changes impact the development of the cryptocurrency market?
Recent regulatory changes, such as Anchorage Digital obtaining a banking license and the SEC’s approval of Bitcoin-related ETFs, indicate that cryptocurrencies are here to stay, and secure methods of investing in them continue to attract institutional and consumer interest.
7. What challenges do investment advisors face regarding digital assets?
Financial advisors strive to stay informed about cryptocurrencies as consumer interest grows. However, banks and other institutions remain hesitant to engage with digital assets due to regulation and other factors.
8. What is the approach of investment advisors and bank management toward cryptocurrency regulations?
Both investment advisors and bank management will proceed cautiously as cryptocurrency regulations continue to evolve, aiming to provide access to financial tools tailored to this new field.
Suggested Related Links:
1. Anchorage Digital Bank website
2. Onramp Invest website
The source of the article is from the blog macnifico.pt