TL;DR
- Anchorage Digital Bank will act as the custodian for the new cryptocurrency ETFs ARKB and CETH issued by 21Shares, highlighting its role as a qualified custodian thanks to its federal charter.
- The company will implement biometric authentication and advanced security measures, such as offline storage of private keys and segregation of client funds.
- The firm has managed over $50 billion in assets under custody and is backed by major investors.
Anchorage Digital Bank, a federally chartered crypto bank, announced that it will provide custody services for two new spot cryptocurrency exchange-traded funds (ETFs) issued by 21Shares: the ARK 21Shares Bitcoin ETF (ARKB) and the 21Shares Core Ethereum ETF (CETH).
The decision to choose Anchorage is due to its federal charter, which allows it to operate under a regulatory framework that supersedes state regulations and positions it as a qualified custodian for these financial instruments, offering a diversification option in ETF custody.
🚀 Big news! @Anchorage Digital Bank is now a custodian for @21Shares' US spot ETFs:@ARKInvest Bitcoin ETF (ARKB)
Core Ethereum ETF (CETH)What sets us apart:
✅ Bankruptcy-remote, segregated custody
✅ Federally regulated qualified custodian
✅ Offline key storage pic.twitter.com/xIJqdKReCh— Anchorage Digital (@Anchorage) September 12, 2024
To ensure the security of the funds, Anchorage will implement advanced measures, including mandatory biometric authentication for issuers and participants, aimed at mitigating the risks of human error and enhancing protection in the management of ETFs.
Anchorage Offers Offline Custody of Private Keys
Additionally, the company highlighted that its custody services are characterized by offline storage of private keys and a low-latency architecture designed to facilitate the efficient creation and redemption of fund shares. This also includes a legal obligation to segregate client funds from the firm’s funds, providing an additional level of security.
Anchorage reflects the growth in institutional adoption of digital assets and the need for a secure market structure that supports shareholders. Its role is essential in building a bridge between traditional finance and the digital asset ecosystem.
Since its founding in 2017, Anchorage has managed over $50 billion in assets under custody and is backed by prominent investors such as Goldman Sachs, Andreessen Horowitz, KKR, and Visa. Its latest Series D funding round valued the company at over $3 billion, solidifying its position as a leader in the digital asset custody sector.
