tl;dr
Anchorage Digital, a digital asset trust bank, will safeguard some of the Bitcoin and Ethereum held by BlackRock's exchange-traded funds. BlackRock may use several custody accounts at Anchorage for its iShares Bitcoin Trust ETF and iShares Ethereum Trust ETF. This arrangement highlights BlackRock's ...
Anchorage Digital, a digital asset trust bank, has partnered with BlackRock to safeguard some of the Bitcoin and Ethereum held by the company's exchange-traded funds (ETFs). The arrangement will see BlackRock potentially using several custody accounts at Anchorage for its iShares Bitcoin Trust ETF and iShares Ethereum Trust ETF. This move underscores BlackRock's risk management approach and its increasing involvement in the digital asset space.
BlackRock had previously engaged crypto exchange Coinbase as a custodian for its two crypto funds. However, this new deal with Anchorage will not impact the existing custodial arrangement with Coinbase. Anchorage Digital, as a digital asset trust bank, is authorized to hold cryptocurrencies on behalf of clients and also specializes in staking, trading, and governance.
BlackRock's collaboration with Anchorage signals its commitment to addressing client demand for digital assets, with Anchorage's CEO expressing excitement about establishing a new standard for tailored access to the digital asset class.
While Coinbase has been dominant in securing billions of dollars' worth of digital assets for Wall Street products, other players in the industry have also been forming custodial arrangements. For example, asset manager VanEck custodies its Bitcoin ETF with crypto exchange Gemini, and financial titan Fidelity self-custodies the BTC backing its Bitcoin fund.
It's worth noting that BlackRock's custodial arrangement with Coinbase will remain unaffected by the new deal with Anchorage, as BlackRock has the discretion to decide how funds are split between the two firms.