Digital asset bank Anchorage has made a significant move in expanding its institutional custody services into the Bitcoin layer-2 ecosystem through a partnership with Stacks. Stacks (STX) is a leading L2 solution on Bitcoin that recently achieved a major milestone with its Nakamoto upgrade. This collaboration establishes Stacks as the first platform to integrate Anchorage Digital Bank N.A., providing STX holders access to custody services.
In a recent announcement on Sept. 4, Anchorage Digital revealed that it now offers crypto custody support for STX, marking its official entry into the Bitcoin L2 ecosystem. Nathan McCauley, the CEO and co-founder of Anchorage Digital, expressed excitement about the partnership, stating, “Layer 2s like Stacks are advancing a new vision for the Bitcoin ecosystem—and institutions are taking notice. As the crypto ecosystem continues to expand, we are committed to providing safe, secure, and regulated access to innovative networks like Stacks. We’re pleased to offer access to qualified custody for Stacks via Anchorage Digital Bank N.A.”
The Bitcoin L2 ecosystem is experiencing rapid growth as institutional demand for digital assets, particularly Bitcoin, continues to rise. Venture capital firms have shown strong support for Bitcoin L2 projects, with a significant portion of investments in the L2 space going towards projects developing Bitcoin L2 solutions in the second quarter of 2024.
Stacks, which launched its mainnet in 2021, is poised to unlock an ecosystem with an estimated latent capital of over $800 billion. The project’s Nakamoto upgrade is a crucial step towards enabling decentralized finance applications on Bitcoin, with its sBTC token playing a key role in Bitcoin DeFi, gaming, and other applications.
Overall, the partnership between Anchorage and Stacks marks a significant milestone in the evolution of the Bitcoin layer-2 ecosystem, providing institutional investors with access to innovative and secure custody services within this growing market.