Anchorage Digital Bank has announced a new partnership with the Stacks platform, expanding its token custody services into the Bitcoin layer-2 (L2) ecosystem.
Partnership with Stacks
On September 4, Anchorage Digital announced the addition of crypto custody support for Stacks (STX). This makes Stacks the first platform to integrate with Anchorage Digital Bank N.A., providing STX holders with access to custody services. "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." noted Nathan McCauley, CEO and co-founder of Anchorage Digital.
Growing Bitcoin L2 Market
Bitcoin continues to dominate the market as the top digital asset, with institutional demand spiking in recent months. Part of this recognition and demand has come amid new opportunities through layer-2 (L2) networks—a market segment on Bitcoin that experts predict is a significant opportunity. Major venture capital firms have backed several Bitcoin L2 projects. According to a recent report, more than $94.6 million, or 42.4% of investments in the L2 sector, went to projects building Bitcoin L2 solutions in the second quarter of 2024.
Importance of Nakamoto Upgrade
Stacks, which launched its mainnet in 2021, is one of the projects experts believe could unlock an ecosystem with an estimated latent capital of over $800 billion. The Nakamoto upgrade of the project is crucial in the development of decentralized finance applications on Bitcoin. Its sBTC token will be a key element in Bitcoin DeFi, gaming, and other applications.
The new partnership between Anchorage and Stacks represents an important step in the development of the Bitcoin ecosystem, opening new opportunities for institutional investors and expanding the functionality of cryptocurrency solutions.
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