Bridging the Gap Between Institutions and Crypto Markets with Anchorage

Delve into the world of cryptocurrency with global experts at REDeFiNE TOMORROW 2024, hosted by SCB 10X. This session will focus on "Bridging the Gap Between Institutions and Crypto Markets with Anchorage," featuring Diogo Mónica (Co-founder & Executive Chairman of Anchorage Digital) and Samar Sen (Head of APAC at Talos).

Anchorage Digital: The First Crypto Bank in the United States

The session began with the intriguing story of Diogo Mónica and Nathan McCauley, the founders of Anchorage Digital.

The founders, both seasoned security engineers with extensive experience at leading tech companies, founded Anchorage Digital to manage digital assets for financial institutions and organizations, providing investors with convenient and secure access to cryptocurrencies.

Diogo, as Chairman, played a pivotal role in Anchorage Digital becoming the first and only cryptocurrency bank to receive a national bank charter from the Office of the Comptroller of the Currency (OCC). This marked a significant milestone for the cryptocurrency industry, both in the US and globally, significantly enhancing its credibility.

Enhancing Institutional Credibility Through "Staking" Services

Diogo further explained that the national bank charter from the OCC allows Anchorage Digital to offer "staking" services, allowing investors to use their digital assets as collateral through Proof-of-Stake (PoS) in exchange for the right to participate in transaction verification and help enhance blockchain network transparency.

Aiming to increase long-term returns for institutional investors, Diogo views Anchorage Digital's staking services as a valuable opportunity. The OCC's recognition of Anchorage Digital as a federally chartered bank further bolsters its credibility and data security.

How does Spot Bitcoin ETFs Impact the Crypto Ecosystem?

A Spot Bitcoin ETF (Exchange-Traded Fund) is a fund approved by the US Securities and Exchange Commission (SEC) that allows investors to trade assets on the stock exchange without owning the digital asset or Bitcoin like on other platforms.

This makes Diogo believe that the SEC's approval of Spot Bitcoin ETFs positively impacts Anchorage Digital's business and the cryptocurrency ecosystem. Since it attracts institutional investors to invest in cryptocurrencies and offers them the choice to invest in ETFs or own assets directly.

Additionally, Diogo commented that the emergence of Stablecoins has impacted USDT and USDC. This is because Stablecoins can generate stable returns and are transparent, making them more attractive to investors than USDT and USDC. There is also a growing trend indicating that the trading volume of Stablecoins will gain popularity and increase in the future.

Introducing New Products: "Porto" and "Atlas"

Anchorage Digital recently launched Porto (porto.xyz), an asset management service that expands Anchorage Digital's capabilities, allowing institutions to connect to DeFi and participate in governance more easily. Another new product, Atlas, leverages their national bank charter to facilitate cryptocurrency payments between parties, making it ideal for high-value digital asset transactions. Atlas has the potential to significantly impact the cryptocurrency market in the US.

Anchorage Digital's future plans include continuous development of new products and services, with a focus on enhancing the security, accessibility, and utility of digital assets to adapt to the changing cryptocurrency market trends. Additionally, Anchorage Digital aims to provide solutions for clients to maximize the benefits of their investments, including generating returns on stablecoins and dollars, which are popular investment forms among their clientele.

The Future of Anchorage Digital and its Path to RWA Creation

The collaboration between Anchorage Digital and BlackRock, a leading global asset management firm, marks a significant step in Anchorage Digital's growth. Anchorage Digital will manage BlackRock's "BUIDL" digital asset fund, which is one of the first funds to utilize blockchain technology to transform U.S. government bonds into digital tokens. Diogo mentioned that Anchorage Digital has plans for future projects to convert various real-world assets into digital tokens (RWA Tokenization), offering new investment opportunities to a wider range of investors.

Summary

The session concluded with Diogo discussing his recent transition to Executive Chairman at Anchorage Digital, while simultaneously taking on a new role as General Partner at Haun Ventures. Throughout his career, he has invested in over 125 companies and remains deeply committed to fostering a more secure cryptocurrency ecosystem. This passion aligns with Haun Ventures' focus, where he will continue to champion security-focused crypto projects. Despite his expanded responsibilities, Diogo remains actively involved in Anchorage Digital's growth, as evidenced by the recent appointment of Aaron Schnarch, former CEO of Coinbase Custody, as COO.

For those interested in learning more about Anchorage Digital, please visit their website Anchorage Digita
watch the session on YouTube: https://youtu.be/c9HTMC67hb0?si=QLOLoGoqYG0Aq2Dm