Anchorage, the cryptocurrency storage company that obtained a federal bank license in January, announced that it has raised $350 million from asset manager KKR, Goldman Sachs and others.
The “series D” round values the company at over $3 billion.
In an interview with Decrypt, Anchorage CEO Diogo Mónica said the company will use the recent funding, in part, to assist its customers, which include large banks and corporations, as they expand their cryptoactive offerings.
“Institutions started to develop products in 2020 that will reach the market in 2022”, said Mónica, predicting that banks will start offering services with cryptocurrencies (such as the ability to buy and sell bitcoin ) to their customers from next year.
If that happens, it will be an advantage for Anchorage, which has leveraged its federal bank license obtained to win contracts with banks and financial giants such as Visa .
Such contracts started as escrow agreements, in which Anchorage stores digital assets, but which increasingly included services such as staking (where asset holders lock coins and tokens in exchange for rewards).
According to Diogo, custody now totals less than 50% of its revenue and its staking and lending business continues to expand. Meanwhile, Diogo predicts that new lines of business will emerge for Anchorage as banks look to offer products, such as Decentralized Finance (or DeFi) based income offerings.
The company has also benefited from the growing array of cryptoactives that institutions aim to interact with via Anchorage. These include non-fungible tokens (or NFTs) , such as some CryptoPunks that are in custody for Visa and others.
Anchorage expansion does not include IPO
Anchorage's customer base has also expanded from private institutions to government agencies. In 2020, the company added the Federal Deposit Insurance Corporation (or FDIC) and the US Delegates Service (USMS) as its custodial clients.
Anchorage has no plans to follow the lead of crypto companies such as Coinbase and Robinhood and conduct a currency initial offer (or IPO).
According to Mónica, the company's balance sheet is in good shape (Anchorage has yet to allocate $80 million raised in February) and the new “D series” will provide a “capital cushion” and strategic and key partners.
In addition to KKR and Goldman Sachs, investors in the round include Alameda Research, Andreessen-Horowitz, BlackRock, Blockchain.com, Kraken and PayPal Ventures .
*Translated and edited by Daniela Pereira do Nascimento with permission from Decrypt.co .
The post Major banks will offer cryptocurrencies in 2022 says Anchorage CEO first appeared in Bitcoin Portal .