Crypto Custody Firm Anchorage Raises $350 Mln To Reach $3 Billion Valuation

Crypto custody firm Anchorage Digital has raised $350 million during its Series D fundraiser making the valuation of the company $3 billion. Earlier this year, the company had the Series C fundraiser where it raised $80 million.

Anchorage primarily offers custody solutions to some of the largest financial institutions in the country. But the company also allows trading cryptocurrencies on its platforms. The founders of the company, Diogo Mónica, and Nathan McCauley, have realized that more and more finserv companies are edging towards crypto. This is one of the niches Anchorage has managed to serve, which makes them so valuable.

The company in its third round of funding was backed by Singapore’s sovereign wealth fund GIC, but the fourth round has seen many of the large investment firms enter the fray such as KKR, Goldman Sachs, Alameda Research, Andreessen Horowitz, Apollo credit funds, and BlackRock. This is because Anchorage is the first digital asset bank that is federally chartered. The charter that Anchorage received earlier this year from the Office of the Comptroller of the Currency headed by Brian Brooks enables the company to act as a custodian to traditional banking entities as well.

“We’re starting to see companies in this space that, like Anchorage, have proven leadership teams and models that are ready for the next level of growth that our capital and expertise can support and accelerate,” Ben Pederson, a director at KKR’s growth team said.

Anchorage has managed digital transactions for Visa back in 2019 when Visa acquired its first NFT purchase, CryptoPunk #7610. It is now the handler of Visa’s crypto-based settlements.

With the huge fundraiser, the company wants to branch out to continental Europe and Asia.

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