Abra buys Valkyrie’s Tron and Zilliqa trusts

Digital asset and wealth management platform Abra has acquired Tron (TRX) and Zilliqa (ZIL) from Valkyrie Investments.

Abra acquired the private foundations just ahead of a settlement with 25 U.S. state regulators over accusations that it operated without the necessary licenses, Bloomberg reported on Friday.

Abra Capital Management LP, a U.S. Securities and Exchange Commission (SEC) registered investment advisor, led the initiative. Marissa Kim, President of Abra Asset Management, said:

Tron and Zilliqa trusts

Acquisitions include the purchase of Valkyrie trusts for Tron and Zilliqa, as well as others that have yet to be released.

Kim noted that the crypto private trusts offer Abra Capital Management an opportunity to expand its spot and decentralized finance (DeFi) products to more investors. Abra may apply to have some of the trusts publicly traded, Kim added, adding that this would depend on market demand.

In crypto trusts, the asset manager holds digital assets on behalf of the investor.

Shares of the coins, in this case TRX or ZIL, can be bought and sold on over-the-counter (OTC) markets. However, these investment assets are not exchange-traded funds (ETFs) and are only available to accredited investors, institutions, or high-net-worth individuals.

US state regulatory agreement

The latest news about Abra comes weeks after the company reached a settlement with several U.S. state regulators following accusations of unregistered transactions in the offering of crypto assets.

The deal, which was signed in June, will see Abra refund $82.1 million worth of cryptocurrency to its U.S. customers.

Abra also reached a settlement with Texas securities regulators that will allow customers to withdraw their money in January 2024.

Crypto services via Abra Treasury

Abra Capital Management this week announced the launch of Abra Treasury, which offers crypto services to corporations, family offices, and nonprofits.

These clients can leverage Abra for custody, borrowing, trading and yield with the services. Accessible through separately managed accounts. Investors will retain ownership and title to their digital assets, which will be verifiable on-chain.