Cryptocurrency bank Anchorage Digital opens institutional pathways into Bitcoin-native decentralized finance (DeFi), providing a regulated gateway to BOB’s Bitcoin-Ethereum ecosystem.
The custody service provided by a US federally chartered bank could provide a boost to institutional participants seeking return opportunities in BOB’s $250 million total value locked (TVL) DeFi platform, according to an emailed announcement shared with CoinDesk on Friday.
Anchorage also holds a Major Payment Institution License (MPI) from the Monetary Authority of Singapore (MAS) and provides a self-deposit package called Porto.
BOB (“Build on Bitcoin”) describes itself as a hybrid layer-2 network that combines the security of Bitcoin and the DeFi capabilities of Ethereum, allowing users to use their BTC holdings to access profit opportunities in the wider blockchain ecosystem with Ethereum as the entry point.
Anchorage, which provides custody services to BOB, marks a step in making bitcoin provide options available to institutions seeking secure and compliant infrastructure. The total value locked in real Bitcoin DeFi has increased from $200 million to over $8 billion in the past 18 months, according to DeFiLlama.
However, it still only represents 0.3% of bitcoin’s market capitalization. The expansion of regulated access points could catalyze greater growth as institutions look beyond passive BTC exposure to engage in profitable DeFi activity.
“As smart contract capabilities mature, they unlock new applications that combine Bitcoin’s security with fresh utility, opening the door for institutions and holders to participate in meaningful ways,” said Nathan McCauley, CEO of Anchorage Digital, in Friday’s announcement.
Read more: Bitcoin Holding Institutions Seeking Returns, DeFi Capabilities
