Anchorage Digital to Enable Institutional Bitcoin Staking with Stacks

TL;DR: Institutions will be able to participate in PoX-5 Bitcoin staking with their BTC held at Anchorage Digital and never leaving Bitcoin L1.

Anchorage Digital, home to America's first federally regulated crypto bank, is bringing institutional-grade custody to Bitcoin staking on Stacks, enabled by the PoX-5 upgrade, which introduces a new way for Bitcoin holders to put BTC to work for BTC-denominated rewards while keeping their assets on the Bitcoin L1. 

Participating BTC is not bridged, wrapped, lent, rehypothecated, or handed to a third party. It stays on Bitcoin L1 in a consensus-enforced timelock and returns to its owner at the end of the term. What has been missing is the custody layer: a way for institutions to make Bitcoin productive under the same standards they apply to every other asset on their balance sheet.

Anchorage Digital is building that layer. Clients will be able to enroll in and fund a BTC bond directly from their Anchorage Digital Bank, N.A.  account, monitor their assets, receive weekly rewards in BTC, and take receipt of their BTC principal at maturity, with the Bitcoin under the custody of a federally chartered bank throughout. Registration and signing on the Stacks side, including the paired STX stake, remain with the client.

"Institutions want to make their Bitcoin productive without compromising on custody or security. Bitcoin staking with Stacks is one of the first mechanisms where the principal stays on Bitcoin, and our role is to make this operation as secure as holding Bitcoin itself."—Nathan McCauley, CEO and Co-Founder, Anchorage Digital

Returns from Bitcoin staking have typically meant taking payment in another asset, whether a network's own token or a derivative that must be sold to realize value in BTC. PoX-5 pays rewards in BTC on Bitcoin L1, so principal and returns sit in the same asset institutions already hold, custody, and report, with no reward-token exposure and no conversion step.

“Bitcoin staking launches for Bitcoin holders who want to put BTC to work without bridging or wrapping it, which is particularly important for institutions. Anchorage Digital Bank brings the federal charter, security track record, and operational rigor institutions require. Their support is an important step toward making Bitcoin staking something institutions can participate in through infrastructure they already trust.” —Muneeb Ali, Founder, Stacks 

Bitcoin-secured networks are still early, an institutional custody has been the gap in nearly every one of them. Support for Bitcoin staking closes that gap for institutions wanting to put their native Bitcoin to work on Stacks, and establishes a standard Anchorage Digital intends to bring to the mechanisms that follow. Institutions interested in participating should get in touch.

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Custody, settlement, staking, and governance services are offered through Anchorage Digital Bank National Association (“Anchorage Digital Bank”). Digital asset trading services are provided by Anchorage Hold LLC (“Anchorage Hold”). Agency trading services are offered in New York by Anchorage Digital NY, LLC. BitLicense #0000041. A1 Ltd. is a principal trading business. Anchorage Services, LLC (“Anchorage Services”) is an NFA-registered introducing broker, NFA ID No. 0532710. Anchorage Digital Bank, Anchorage Hold, and Anchorage Services are not registered with the SEC or any state authority as a broker or dealer and are not authorized to engage in the business of the offer, sale, or trading of securities. Anchorage Digital services are offered to institutions and certain high net worth individuals in limited circumstances. Certain trading services are designed and available only for institutions who meet eligibility requirements, including qualification as an Eligible Contract Participant (ECP) under the rules of the U.S. Commodity Futures Trading Commission. For institutions participating in custody, staking, or governance with Anchorage’s Singapore entity, those services are offered through Anchorage Digital Singapore Pte Ltd (“Anchorage Digital Singapore”). Anchorage Digital does not provide legal, tax, or investment advice or private banking services. There can be no assurance that any cryptocurrency, token, coin, or other crypto asset will be viable, liquid, or solvent. No Anchorage Digital communication is intended to imply that any digital asset services are low-risk or risk-free. Digital assets held in custody are not guaranteed by Anchorage Digital and are not subject to the insurance protections of the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Corporation (SIPC).

‍Holdings of cryptocurrencies and other digital assets are speculative and involve a substantial  degree of risk, including  the risk of complete loss. There can be no assurance that any cryptocurrency, token, coin, or other crypto asset will be viable, liquid, or solvent. No Anchorage Digital communication is intended to imply that any digital asset services are low-risk or risk-free. Digital assets held in custody are not guaranteed by Anchorage Digital Bank National Association and are not FDIC-insured.