🌎 Abra Acquires Tron and Zilliqa Trusts Amid Regulatory Settlement

Abra, a digital assets and wealth management platform, has acquired Tron (TRX) and Zilliqa (ZIL) among other private crypto trusts from Valkyrie Investments.

According to recent reports, Abra completed the acquisition just before settling with 25 U.S. state regulators over charges of operating without the necessary licenses. Abra Capital Management LP, a US Securities and Exchange Commission (SEC)-registered investment advisor, spearheaded this initiative, as stated by Marissa Kim, head of asset management at Abra.

Tron and Zilliqa Trusts

The acquisitions specifically included Valkyrie trusts for Tron and Zilliqa, along with other trusts that are yet to be launched. Kim mentioned that these crypto private trusts provide Abra Capital Management with an opportunity to expand its spot and decentralized finance (DeFi) products to a broader investor base. She also hinted that Abra might file to have some of these trusts publicly traded, depending on market demand.

In crypto trusts, an asset manager holds digital assets on behalf of investors. The shares of these assets, such as TRX or ZIL, are tradable in over-the-counter (OTC) markets. However, these investment assets are not exchange-traded funds (ETFs) and are only accessible to accredited investors, institutions, or high-net-worth individuals.

Settlement with U.S. State Regulators

Abra’s recent activities come on the heels of a settlement with several U.S. state regulators over charges related to unregistered operations in offering crypto assets. This settlement, which occurred in June, obliges Abra to return $82.1 million in cryptocurrencies to U.S. customers.

Moreover, Abra settled with Texas securities regulators in January 2024, allowing customers to withdraw their funds without any issues.

Crypto Services via Abra Treasury

Abra Capital Management has recently launched Abra Treasury, offering crypto services aimed at corporates, family offices, and non-profits. These customers can utilize Abra for custody, borrowing, trading, and yield services. The services are accessible through separately managed accounts, ensuring that investors retain the title and ownership of their digital assets, which will be verifiable on-chain.