Cryptocurrency General News

Anchorage Raises $40M in a Series B round of funding

In another sign of bullish attitudes for the technology, crypto custody firm Anchorage has secured a Series B round of funding to the tune of $40 million. Among the supporters are VISA, Blockchain Capital and Andreessen Horowitz. The Series B financing arrives just six months after Anchorage secured a $17 million Series A deal.

Crypto custody techniques have become increasingly important in an attempt to attract institutional investors. In the still early days of digital assets, there are no set standards for storing coins or tokens, leading to some of the largest exchange hacks and losses due to shoddy storage techniques.

The approach 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.

For an additional layer of security, Anchorage also offers insurance for all digital assets held in custody.

“As a custodian, our work is focused on building financial plumbing that other companies depend on for their operations to run smoothly. In this regard we have always looked at Visa as a model,” said Anchorage co-founder and president Diogo Mónica.

For VISA, this will be the second selection of a crypto project, after participating in a $30 million round of financing for the Chain startup in 2015.

Secure storage for various assets is a challenge in 2019, where new types of blockchains appear. Especially in the case of Delegated Proof-of-Stake networks like EOS or Tezos, the matters of voting and staking are a challenge. Coinbase has attempted to solve the problem, by offering secure XTZ storage, along with the potential to “bake” the coins, receive passive income and avoid the dilution of coins.

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