Diogo Mónica, Co-Founder and President
Anchorage clients can now custody Chainlink’s governance token (LINK). As more and more of the DeFi landscape relies on off-chain and offline data, solutions like Chainlink will likely only grow in importance. We’re proud to offer our clients the ability to include LINK in their crypto portfolios as an asset that meets our high bar for quality and security.
While smart contracts enable much of what makes the emerging DeFi space exciting, they have their limitations. For a smart contract to access data outside a given blockchain — say, crypto or commodity price feeds — requires some kind of middleware. Up to now, this middleware has often taken the form of a centralized oracle.
The problem is that using a centralized oracle introduces a single point of failure, meaning the entire connection becomes only as secure as the centralized oracle itself. This is not only a hypothetical problem, but one that has already had some real world consequences. To solve it, Chainlink utilizes a decentralized network of oracles, allowing blockchains access to offline and off-chain data without introducing the single points of failure that come with centralization. As Chainlink’s native token, LINK can be used to both stake on the network, and pay fees associated with network use.
At Anchorage, we’re constantly working to support additional assets. If you’d like to learn more about our roadmap and our support for an asset you care about, please get in touch.
Disclaimer: Custody services are offered through Anchorage Trust Company, a South Dakota chartered trust company. Trading and collateral management services are offered through Anchorage Hold, LLC, a Delaware limited liability company. Anchorage Trust Company and Anchorage Hold are not registered with the SEC or any state securities authority. Services are not yet offered to residents of New York. Anchorage Trust Company does not engage in the offer, sale or trading of digital assets. Anchorage Hold does not engage in the offer, sale or trading of securities. Anchorage Trust Company and Anchorage Hold do not provide legal, tax, or investment advice. Services are provided only to clients that meet specified standards of sophistication and have entered into the applicable custody or trading agreements. Anchorage Trust Company and Anchorage Hold are wholly-owned subsidiaries of Anchor Labs, Inc., a Delaware corporation headquartered in San Francisco, California.
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. Nothing in this communication is intended to imply that any asset held in custody by Anchorage is low-risk or risk-free. Anchorage does not provide investment, legal, or tax advice. Digital assets held in custody are not guaranteed by Anchorage Trust Company or Anchorage Hold and are not FDIC-insured.