After securing a license from the state of South Dakota, Anchorage Trust Company will set up its headquarter in Sioux Falls. U.S. Sen. Mike Rounds of South Dakota confirmed the news of the removal of the regulatory hurdle in a U.S. Senate Banking Committee hearing.
Nathan McCauley, co-founder, and CEO of Anchorage said:
“South Dakota has struck the right balance by developing a strong regulatory regime, while also encouraging growth in the trust industry through the adoption of innovative trust laws.”
Crypto custody techniques have become more prominent in an effort to draw institutional investors. In the still early days of digital assets, there were no set standards for storing coins or tokens, heading to some of the largest exchange hacks and losses due to poor storage systems. Now, institutions are eager to invest in digital assets, but until now they’ve had to face a trade-off between security and asset productivity.
Although, the path of Anchorage goes beyond mere cold storage, which may slow down access to the assets. The firm attempts to build a system involving multiple tiers of security and approvals, combining biometric software and human-based permission. Engineered to solve digital asset security, Anchorage is outlined to enlarge all the benefits of asset accessibility, including catching yield from staking and inflation, voting, auditing proof of existence, and fast transactions.
Recently, Anchorage raised $17 million in a Series A round led by Andreessen Horowitz, with participation from Khosla Ventures, PayPal co-founder Max Levchin’s SciFi VC, and individual investors Mark McCombe of Blackrock, entrepreneur Elad Gil, and AngelList co-founder Naval Ravikant.