BlackRock Expands Crypto Custody with Anchorage Digital Partnership

BlackRock, the world's largest asset manager, has expanded its digital asset custody services by partnering with Anchorage Digital. This move is aimed at strengthening BlackRock's position in the cryptocurrency market, particularly in managing its growing list of digital investment products, including the largest spot Bitcoin ETF in the market. Anchorage Digital, a federally regulated digital asset trust bank, will be responsible for safeguarding some of the Bitcoin and Ethereum held by BlackRock's exchange-traded funds.

The decision to partner with Anchorage Digital comes as BlackRock seeks to meet the increasing demand for crypto products from investors. Robert Mitchnick, Head of Digital Assets at BlackRock, emphasized the importance of trusted partners in managing and protecting investor funds. Anchorage Digital's strong regulatory compliance and federally regulated crypto services make it a suitable choice for BlackRock. This partnership joins Coinbase as a key player in helping BlackRock manage its digital assets.

Anchorage Digital is no stranger to partnerships with large financial firms. Last month, Cantor Fitzgerald, a well-known financial services company, also selected Anchorage to help with digital asset custody. Anchorage is one of the few federally regulated crypto platforms in the U.S., having received a BitLicense from the New York State Department of Financial Services last October. This license allows Anchorage to legally offer crypto services to institutions in New York, one of the strictest regulatory environments in the country.

The rise of spot crypto ETFs like BlackRock’s IBIT has brought significant investment into the crypto market, making digital assets more legitimate and accessible for traditional investors. With Anchorage joining, BlackRock is broadening its team to include more regulated and trusted crypto firms. This move is part of a larger effort to provide safe, institutional-grade access to digital assets.

Nathan McCauley, Co-founder and CEO of Anchorage Digital, highlighted the importance of safe and regulated infrastructure in the crypto industry. The partnership with BlackRock underscores the growing demand for secure and compliant digital asset custody solutions. As the crypto market continues to evolve, partnerships like these will play a crucial role in ensuring the safety and legitimacy of digital investments.