Cryptocurrency bank Anchorage Digital is blazing institutional paths to 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 yield opportunities on BOB’s $250 million total value locked (TVL) DeFi platform, according to an email announcement shared with CoinDesk on Friday.
Anchorage also holds a Major Payment Institution (MPI) License from the Monetary Authority of Singapore (MAS) and provides a self-custody wallet 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, whereby users can use their BTC holdings to access yield opportunities in the broader blockchain ecosystem with Ethereum as an entry point.
Anchorage providing custody services for BOB marks step in bitcoin creation generate accessible opportunities for institutions seeking secure and compatible infrastructure. The total value locked in true Bitcoin DeFi has increased from $200 million to more than $8 billion in the last 18 months, according to DeFiLlama.
However, that still represents only 0.3% of bitcoin’s market capitalization. The expansion of regulated hotspots could catalyze further growth as institutions look beyond passive BTC exposure to engage in yield-generating DeFi activities.
“As smart contract capabilities mature, new applications are unlocked that combine the security of Bitcoin with new utility and open the door for institutions and holders to participate in a meaningful way,” Nathan McCauley, CEO of Anchorage Digital, said in Friday’s announcement.
Read more: Bitcoin Holding Institutions Seeking DeFi Performance and Capabilities
