Education

The Rise of Crypto Wealth Management Platforms

The crypto market is shifting to provide a wealth of opportunities to anyone interested in buying crypto. 

At the start of 2017, the total crypto market cap was less than $20 billion, according to Statista. And, five years later, the market cap has skyrocketed to $1.77 trillion (as of February 2022).

The cryptocurrency market landscape has changed drastically in recent years. Retail users once dominated the market. 

But now the future of digital currency also includes new market Institutions. This group includes high net worth individuals, family offices, registered investment advisors, and corporate treasuries.  

Crypto wealth management platforms can provide an avenue for institutions and individuals from all economic backgrounds to understand the crypto space. 

Crypto Wealth Management Platform vs Crypto Banks

Crypto wealth management is the practice of purchasing and selling digital assets to be used as investments while managing a portfolio to experience an overall growth in value.

A crypto wealth management platform is slightly different than a crypto bank. While a crypto bank usually only supports digital currency trading, a crypto wealth management platform supports digital currency trading, as well as crypto borrowing and lending.

Crypto wealth management platforms, like Abra, usually offer custodial wallets. Platforms secure cryptocurrency private keys on behalf of the users, while users are responsible for making their own trading decisions. 

Gaining Exposure to Crypto

Crypto wealth management platforms provide a streamlined process for institutions to gain access and exposure to crypto. 

For instance, Abra’s wealth management platform offers an array of services for financial institutions ranging from treasury, trading, and lending. We work with traditional investment funds, corporations, and private enterprises to build custom programs for digital asset exposure and access to liquidity.

Corporate treasuries can add digital assets to their balance sheets and hedge against weakening dollars.

RIA firms have traditionally allocated funds towards the purchase of individual stocks, bonds, and mutual funds. Crypto offers an alternative vehicle for greater portfolio diversification.

Lowering the Barrier to Entry

The crypto market is notorious for its complexity. Learning and fully understanding the benefits and risks, as well as the daily evolution of blockchain technology, can be daunting. 

As the saying goes, “time is money.” This is true for individual buyers or a multi-billion dollar firm. It can also take a lot of time and effort to research the various crypto exchanges and platforms.

Crypto wealth management platforms greatly reduce this learning curve. Institutions can trade digital assets, use crypto holdings as loan collateral, and earn a yield by lending crypto without having to understand the nuances of blockchain or crypto.

Contact Us to Learn More 

Abra is on a mission to create a simple and honest platform to enable millions of crypto holders to maximize the potential of their crypto assets. 

If you’re ready to learn more about our platform? Visit our institutions page and contact us to learn how Abra can help.

Watch our video series: introductions to cryptocurrencies, Money Talks, and more!

Abra supports 117 cryptocurrencies and counting.

Download the Abra app on Android or iOS to begin trading or earning interest on cryptocurrency today!

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About Abra

Established in 2014, Abra is on a mission to create a simple and honest platform that enables millions of cryptocurrency holders to maximize the potential of their assets. Abra enables both individuals and businesses to safely and securely buy, trade, and borrow against cryptocurrencies – all in one place. Abra’s vision is an open, global financial system that is easily accessible to everyone.

Why Abra

Based in the United States, Abra is available in over 150 countries and makes it easy to convert between crypto and a wide variety of local fiat currencies. With over 2MM customers, $7B in transactions processed, and $1.5B in assets under management, Abra continues to grow rapidly. Abra is widely loved and trusted – in April 2022, pymnts.com reviewed and rated Abra amongst the top 5 most popular crypto wallets in the market. Abra is backed by top-tier investors such as American Express Ventures and First Round Capital.

How Abra Protects Your Funds

Abra places clients’ financial objectives and security first. Abra practices a culture of risk management across all levels and functions within the organization.

Abra employs a state-of-the-art enterprise risk management framework that comprises a comprehensive set of policies, procedures, and practices detailing all applicable risk-related objectives and constraints for the entirety of the business. Abra has instituted a complete set of requisite systems and controls that continuously enforce these policies, procedures, and practices to manage all operations, including credit and lending. Abra’s independent Risk Committee comprises experienced compliance, risk, securities, and fraud operations professionals with backgrounds in industries ranging from traditional and digital assets banking, payments, remittance, to fintech.

Please visit our FAQ to learn more.