Anchorage Digital Raises $80 Million After National Bank Charter

Anchorage Secures $80 Million in Series C Funding

Anchorage has successfully completed a $80 million Series C funding round. This investment was spearheaded by GIC, the sovereign wealth fund of Singapore.

Notable participants in this funding round include Andreessen Horowitz, Blockchain Capital, Lux, and Indico.

Rationale Behind the Investment

The core rationale driving this funding is straightforward. Several prominent companies, including Tesla and Square, have begun allocating capital to cryptocurrencies.

These firms are strategically converting a segment of their cash reserves into digital assets. Consequently, investors are increasingly focusing on companies facilitating cryptocurrency integration into cash management – Anchorage being a key example.

From Custody Solution to Digital Asset Bank

Initially, Anchorage provided a secure cryptocurrency custody solution. This service safeguarded digital assets for clients, relieving them of the complexities associated with wallet management and key security.

However, Anchorage has since evolved, obtaining a federal banking charter and transforming into a fully-fledged digital asset bank.

Regulatory Approval and Investor Confidence

Receiving regulatory approval is expected to significantly bolster confidence within the market. Institutional investors are actively seeking reliable cryptocurrency partners as they explore the digital asset landscape.

Expanding Financial Product Offerings

Beyond custody services, Anchorage now provides a range of financial products. These include staking and crypto lending options.

The company’s ambition is to establish itself as a comprehensive platform for institutional investors seeking exposure to digital assets.

Crypto-Banking-as-a-Service

Anchorage is also pursuing a strategy of becoming a crypto-banking-as-a-service provider.

The startup envisions itself as the preferred cryptocurrency partner for both emerging challenger banks and established traditional financial institutions.