Not the city, but the $ 57 million Cryptocurrency Custodian startup. If someone wants to keep dozens or hundreds of millions of dollars safe in Bitcoin, Ethereum, or other coins, they put them in the Anchorage vault . And now they can act directly from custody, so they no longer have to worry about being robbed during the transaction.
With the support of Visa, Andreessen Horowitz, and Blockchain Capital, Anchorage has become the darling of the cryptocurrency security startup scene. With the takeover of crypto-risk modeling company Merkle Data, Anchorage has toned its muscles and team today.
Anchorage has already integrated Merkle's technology and team to drive today's launch of its trading feature, eliminating the need for large crypto owners to manually store assets to buy or sell, or to set up their own in-house trading, and instead of achieving an undisclosed spread between the spot rate and the price Anchorage customers pay, a transparent fee of one-tenth percent per transaction was charged.  Trading digital assets is stressful enough, and Anchorage gives institutions and token moguls the confidence throughout the process that they can participate and vote while their wealth is in custody. Nathan McCauley, CEO of Anchorage says to me: “ Our customers want to be able to fund a USD bank account and seamlessly convert it to crypto that is securely held in their custody account. Amazingly, that's not the norm yet – but we're changing it. ”
Anchorage was founded in 2017 by leading companies behind Docker and Square. Anchorage's core business is the omnimetric security system that steals passwords that can be lost or stolen from the equation. Instead, people and AI are used to check scans of your biometrics, nearby networks, and other data to confirm identity. Then consensus approval is required for transactions from a number of trusted managers that you have whitelisted.
With Anchorage Trading, the startup promises efficient order routing, transparent pricing and liquidity at several locations of OTC desks, exchanges and market leaders. " Since trading and custody are directly integrated, we can buy and sell crypto from custody without having to make risky external transfers or deal with multiple accounts from different providers," said Bart Stephens, founder and managing partner of Blockchain Capital.
Because retail is not Anchorage's primary business, it does not have to squeeze customers into their transactions and can instead try to keep them happy in the long run. This also sets anchorage up as a fundamental part of the cryptocurrency stack. The terms of the Merkle Data acquisition would not be announced, but the Pantera Capital-backed company is bringing quantitative analysts to Anchorage to make its trading safe and intelligent.
“In Contrast Most traditional financial assets are crypto-assets are holder assets: in order to do anything with them you need to have the underlying private keys , This means that crypto custodians like Anchorage must play a much bigger role than custodians in traditional finance, ”says McCauley. "Services such as trading, settlement, collateral, lending and all other financial activities related to the assets depend on the involvement of the custodian and, in our view, are best performed directly by the custodian."
Anchorage will keep up with Coinbase, which offers integrated custody and institutional mediation through its OTC counter. Fidelity Digital Assets combines trading and brokerage, but only for Bitcoin. BitGo offers brokerage from custody through a partnership with Genesis Global Trading. But Anchorage hopes that its experience in dealing with huge sums, clear prices, and credentials like membership in Facebook's Libra Association will gain its customers.
McCauley says the biggest threat to Anchorage is not competition, but hazy regulation. Anchorage is at the heart of the infrastructure of the blockchain economy. However, in order for the largest financial institutions to feel comfortable, legislators must clarify what is legal.