Abra, a platform for managing digital assets and wealth, recently acquired Tron (TRX) and Zilliqa (ZIL) private crypto trusts from Valkyrie Investments, as reported by Bloomberg. This acquisition took place just before Abra settled with 25 U.S. state regulators for operating without the necessary licenses.
Marissa Kim, the head of asset management at Abra, mentioned that Abra Capital Management LP, a registered investment advisor with the SEC, was behind this move. The purchase of Valkyrie trusts for Tron and Zilliqa, along with others that have yet to be launched, presents an opportunity for Abra to broaden its spot and decentralized finance (DeFi) offerings to a wider range of investors.
Kim also stated that Abra might consider making some of the trusts publicly tradable based on market demand. These crypto private trusts enable asset managers to hold digital assets on behalf of investors, with the shares of coins like TRX and ZIL being tradable in over-the-counter (OTC) markets. It’s important to note that these investment vehicles are not exchange-traded funds (ETFs) and are limited to accredited investors, institutions, or high-net-worth individuals.
The recent settlement with U.S. state regulators is another development for Abra, following charges related to unregistered operations in the crypto asset offering. The settlement, which required Abra to return $82.1 million in cryptocurrencies to U.S. customers, was reached in June. In addition, a previous settlement with Texas securities regulators in January 2024 allowed customers to withdraw their funds.
Abra Capital Management introduced Abra Treasury, a new offering aimed at corporates, family offices, and non-profits, providing crypto services such as custody, borrowing, trading, and yield. These services are accessible through separately managed accounts, allowing investors to maintain ownership and verify their digital assets on-chain.
Overall, Abra’s acquisition of private crypto trusts, settlements with regulators, and the launch of Abra Treasury demonstrate the company’s commitment to expanding its offerings and complying with regulatory requirements. Investors can now access a wider range of investment options and services through Abra’s platform, catering to various needs and preferences in the digital asset space.