Cryptocurrency bank Anchorage Digital is opening institutional pathways to Bitcoin-native decentralized finance (DeFi), providing a regulated gateway to BOB’s Bitcoin-Ethereum ecosystem.
The custody service provided by a federally chartered U.S. 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 offers a self-service wallet called Porto.
BOB (“Build on Bitcoin”) describes itself as a hybrid Layer 2 network combining the security of Bitcoin and the DeFi capabilities of Ethereum, through which users can use their BTC holdings to access yield opportunities in the broader blockchain ecosystem with Ethereum as an entry point.
Anchorage Providing Custodial Services for BOB Marks Milestone in Bitcoin Creation generate accessible opportunities for institutions seeking secure and compliant infrastructure. The total value locked in real Bitcoin DeFi has grown from $200 million to over $8 billion over the past 18 months, according to DeFiLlama.
However, this still represents only 0.3% of the Bitcoin market capitalization. The expansion of regulated hotspots could catalyze greater growth as institutions look beyond passive BTC exposure to participate in yield-generating DeFi activities.
“As smart contract capabilities mature, they unlock new applications that combine the security of Bitcoin with new utility and open the door for institutions and holders to participate in meaningful ways,” Nathan McCauley, CEO of Anchorage Digital, said in Friday’s announcement.
Read more: Institutions Holding Bitcoin Looking for Yield and DeFi Capabilities
