Anchorage Digital has announced that it will offer investment giant BlackRock its array of institutional cryptocurrency custody solutions. The custody service provider will extend its services to a range of BlackRock’s spot crypto exchange-traded funds (ETFs) as part of the deal.
Anchorage and BlackRock Forge Partnership For Crypto Custody Solutions
According to the press release, Anchorage Digital says it is deepening its existing partnership with BlackRock by providing the investment behemoth with a slew of digital asset custody services. Per the announcement, the custody service will extend to cover rising retail and institutional demand for BlackRock’s crypto offerings.
BlackRock has tapped Anchorage Digital to occupy the role of an additional custodian for its range of spot crypto ETPs. Furthermore, Anchorage Digital will rehash its role as custodian in BlackRock’s sprawling fund empire with exposure to cryptocurrencies.
Under the arrangement, Anchorage will provide custodial services for spot crypto ETPs with over $50 billion in assets under management. BlackRock is the largest issuer of crypto ETPs, clinching UK FCA registration as a crypto asset firm.
“As BlackRock continues to bridge digital assets and traditional finance, we are excited by the opportunity to set a new standard for tailored access to the digital asset class,” said Anchorage Digital CEO Nathan McCauley.
Anchorage Digital has previously provided its custodial service to Cantor Fitzgerald’s $2 billion financing business. The firm’s customers extend to 21Shares, Visa, Copper, and Oasis Pro Markets.
A Raft Of Reasons Behind The Choice
BlackRock says choosing Anchorage Digital as a custodial service provider was an easy choice. Robert Mitchnick, BlackRock’s Head of Digital Asset noted that Anchorage Digital’s expertise in institutional-grade crypto custodial services makes it an ideal partner.
“After a thorough evaluation, Anchorage Digital clearly meets these standards, and we are excited to be expanding our network of eligible digital asset service providers with the addition of Anchorage Digital,” said Mitchnick.
Anchorage Digital provides firms with “bankruptcy-remote custody” while separating proprietary funds from customers’ assets. As an added layer of protection, Anchorage Digital uses biometric authentication in addition to storing private keys offline.
Furthermore, institutional investors are attracted to Anchorage given its reputation as home to the only US federally chartered crypto bank. Anchorage has previously teamed up with BlackRock for its BUIDL fund, fresh off a Solana expansion.
BlackRock is facing rising competition from its peers with Fidelity’s Solana ETF acknowledged by the US SEC as traditional investment firms jostle for crypto dominance.
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