Anchorage: A Qualified Custodian That’s Safer Than Cold Storage
Nathan McCauley, Co-founder and CEO
Today, we are excited to announce the founding of Anchorage Trust Company, a new Anchorage subsidiary headquartered in Sioux Falls, South Dakota. Anchorage Trust Company is the first Qualified Custodian that does not use hot wallets or cold storage, eliminating vulnerabilities that expose private keys to risk. With Anchorage Trust Company, investors now have the option of a Qualified Custodian that’s both more secure and more usable.
At Anchorage, our mission is to advance institutional participation in the digital asset class. A big part of advancing institutional participation is helping our clients operate in accordance with applicable laws and regulations, including the SEC custody rule.
On July 12, Anchorage Trust Company received its trust company charter from the South Dakota Division of Banking, allowing it to exercise fiduciary powers pursuant to state law. As a state-chartered trust company with fiduciary powers, Anchorage Trust Company is a Qualified Custodian that can help SEC-registered investment advisers meet their obligations under federal law.
South Dakota is central to American banking: the state is home to more than $3 trillion in assets, according to the FDIC — for comparison, that’s roughly three times more than New York. For decades, South Dakota has been the recognized leader in trust law in the United States, and a destination for trust companies seeking the most modern trust and privacy laws in the industry. South Dakota established the nation’s first “Trust Task Force” in 1997, bringing together trust industry representatives and regulators with the goal of maintaining South Dakota’s stature as the premier trust jurisdiction in the United States. Today, over $300 billion of assets are held in South Dakota’s 100+ public and private state chartered trust companies.
Anchorage has earned a reputation for excellence in the crypto community, just as the South Dakota Division of Banking has been well known as a premier regulator of the financial services industry. Today, both were recognized on Capitol Hill by Senator Mike Rounds of South Dakota.
“Our Division of Banking should serve as a model for how governments can study and learn about digital currencies, while at the same time allowing pioneering companies like Anchorage to innovate and try out new products and services. Congratulations to Anchorage, and welcome to South Dakota.”
- Senator Rounds in a Senate Banking Committee hearing this morning
Anchorage Trust Company clients can be assured that the South Dakota Division of Banking is taking an active role in monitoring Anchorage Trust Company’s finances, operations, and compliance in the exercise of fiduciary powers. The South Dakota Division of Banking employs a highly qualified staff of examiners who perform regular examinations of South Dakota trust companies to ensure compliance with trust regulations and industry best practices for protecting client assets.
South Dakota has struck the right balance by developing a strong regulatory regime, while also encouraging growth in the trust industry through the adoption of innovative trust laws. It’s the ideal home for Anchorage Trust Company. We are honored to contribute to South Dakota’s legacy of innovation by providing institutional investors with a first-of-its-kind regulated entity.
“South Dakota is a leader when it comes to thoughtful, forward-looking regulation. The entire ecosystem benefits when rigorous regulation meets an open mind for new technology and industry.”
- Chris Dixon, General Partner at Andreessen Horowitz, an Anchorage investor
We believe regulated entities are necessary for a healthy crypto financial system, and we are proud that Anchorage Trust Company enables clients to hold their assets in legal, regulated custody that enables active network participation. With Anchorage Trust Company, institutional investors no longer have to choose between qualified custody and best-in-class security.
To learn more about Anchorage, please get in touch. To join our growing Sioux Falls team, check out our jobs page.
Quotes from government officials do not imply endorsement. For institutional investors only. Services are offered either through Anchorage Hold LLC, a Delaware limited liability company and registered Money Services Business, or Anchorage Trust Company, a South Dakota-chartered trust company. Anchorage Hold and Anchorage Trust Company are not registered with the SEC. Services are not yet offered to residents of New York. Anchorage Hold and Anchorage Trust Company do not engage in the offer or sale of securities or digital assets, and do not provide legal, tax, or investment advice. Anchorage Hold LLC and Anchorage Trust Company are wholly-owned subsidiaries of Anchor Labs Inc., a Delaware corporation headquartered in San Francisco, California.
