Anchorage Digital Reports 80% Surge in Assets Under Custody, Expands Presence in Portugal
San Francisco-based crypto bank, Anchorage Digital, has witnessed a significant increase in business amid a growing demand for safer asset custody in the cryptocurrency industry. The company reported an impressive 80% surge in assets under custody during the first quarter of 2023 compared to the fourth quarter of 2022.
Recognized as the first federally chartered crypto bank, Anchorage Digital obtained approval from the Office of the Comptroller of the Currency to act as a custodian for other institutions interested in offering cryptocurrency services. The company is currently in discussions to provide custody solutions to EDX Markets, a newly launched crypto exchange supported by prominent firms like Citadel Securities, Fidelity Digital Assets, and Charles Schwab Corp.
While its primary focus remains on providing custodial services to institutions, Anchorage Digital has expanded into trading, lending, and decentralized finance tools, aligning with the increasing involvement of financial institutions in the crypto space. In March, the company announced a reduction of 20% of its staff to realign its business strategy, but it does not have any further job cuts planned at the moment.
The shift from retail to institutional players in the digital asset market has created opportunities for startup custodians and technology providers. Notably, BlackRock Inc., the world’s largest asset manager, filed for a US spot Bitcoin ETF, inspiring other firms such as Fidelity, Invesco Ltd., and WisdomTree to follow suit.
Anchorage Digital secured $350 million in funding at a valuation surpassing $3 billion in 2021, with investors led by private equity firm KKR & Co. The company is now expanding its presence in Portugal, where co-founder and president Diogo Monica resided until his early twenties. With nearly 100 employees in Portugal, Monica plans to oversee Anchorage’s international expansion personally by relocating to Lisbon.
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