Blockchain.com Launches Asset Management Service

Announcements, Blockchain, News, Opinion | April 13, 2022 By:

Blockchain.com, a cryptocurrency financial services startup, recently hit a $14 billion valuation in a Series D funding round, over a 160% increase. The company offers a range of blockchain-based financial services through its cryptocurrency exchange platform and digital wallets.

Blockchain.com recently formed a new partnership with Altis Partners, an investment firm dedicated to managing futures portfolios. This serves as the foundation for a new asset management service called BCAM.

What Is Blockchain.com’s BCAM Service?

BCAM, which stands for Blockchain.com Asset Management, is a new service that delivers institutional crypto investment products. It caters to institutional investors, high-net-worth individuals and family offices interested in the world of cryptocurrency. 

It’s reported that BCAM will track the price of Bitcoin versus the U.S. dollar and provide robust risk management and client services for crypto assets. The two main investment products BCAM offers are BTC Tracker and BTC Smart Beta. Altis Partners manages BCAM, while blockchain.com provides crypto trading infrastructure, security, research and software services.

These products target wealthy, sophisticated and experienced investors. It’s typical for affluent individuals to save a significant amount of money when using wealth management services, and BCAM is no exception.

Blockchain.com’s New DeFi Product

Aside from the BCAM products and services listed above, blockchain.com is also developing a product to manage investor exposure to decentralized finance (DeFi) coins. The DeFi product will connect to smartphone apps facilitating crypto transactions and borrowing and lending without intermediaries.

Blockchain.com will likely use its recent funding to further develop these products and services as demand for actively managed digital asset investments increases. Essentially, BCAM combines traditional financial markets with crypto, a growing area that could potentially change the economic landscape.

Blockchain.com is doubling down on its institutional business by launching these new services and may emerge as an industry leader as a result. 

How Blockchain.com Got Its Start

Blockchain.com initially started as a blockchain explorer, which allows you to enter the transaction’s hash to learn more about the amount, number of confirmations, fees, and wallet addresses of the sender and receiver. Blockchain explorers eventually added support for more blockchains and other types of data.

Soon after, blockchain.com, first called blockchain.info, created an open-source Bitcoin wallet. Now, it supports other types of cryptocurrency and stablecoins. Users with a blockchain.com wallet are in complete control of private keys because this type of wallet is noncustodial. 

One downside of a noncustodial wallet is the risk associated with losing your private key. Users cannot access their wallets without one. As a result, blockchain.com and some of its main competitors found ways to mitigate this risk by backing up some critical information. 

Eventually, blockchain.com released its own crypto exchange platform so wallet users can trade their assets more easily and efficiently. Other services blockchain.com includes are OTC transactions, order executions, lending and custody.

How Popular Is Blockchain.com?

According to a review from The Motley Fool, the blockchain.com exchange platform boasts over 71 million digital wallets and claims to have $620 billion in total crypto transactions across almost 200 countries globally. These figures could even be higher.

One reason for blockchain.com’s popularity is that it’s suitable for all types of investors with varying experience levels, especially in terms of crypto investments. Blockchain.com is ideal for people with these characteristics:

  • Investors that do not require a wide selection of cryptocurrencies for trading
  • Investors interested in free coins via airdrop
  • Investors who are not concerned with customer service
  • Investors who are not worried about lending or borrowing features

Blockchain.com is considered one of the largest players in the crypto market, and the new DeFi and BCAM products will likely bolster their position even further. Targeting wealthy investors may prove to be a wise strategy, but only time will tell.

Blockchain.com and the Crypto Market

It’s expected that blockchain.com will appeal to more existing and potential investors due to its most recent partnership and development plans. It’ll be interesting to see how the new BCAM and DeFi products do once they’re released and if it brings blockchain.com to the forefront of the industry.