Anchorage Digital, the first and only U.S. federally chartered crypto bank, is taking on the custody role for a leading issuer of crypto exchange-traded funds (ETFs), 21Shares.

This custody extends to the ARK 21Shares Bitcoin ETF (ARKB), which is the third biggest bitcoin ETF by inflows, and the 21Shares Core Ethereum ETF (CETH).

The partnership aims to give a wider field of investors easier access to regulated products wrapped around cryptocurrencies that had previously been more difficult to trade.

Custody is a key responsibility for outside firms that maintain safekeeping of billions in assets backing these products, and Anchorage Digital touted its legally required segregation of assets as a bank regulated by the OCC.

The move comes as the U.S. SEC has pursued a proposed rule requiring registered investment advisers to keep clients' crypto assets with "qualified custodians", a list that may be limited to firms like Anchorage Digital.

Anchorage Digital said it is using "industry-leading security and novel technology" to protect assets, including biometric authentication and offline private-key storage.

Custody has become an increasingly thorny problem in the crypto sector, and Anchorage Digital's federal charter positions it as a "natural choice" for ETF custody diversification.

Source: https://www.coindesk.com/policy/2024/09/12/crypto-bank-anchorage-digital-takes-on-custody-for-ark-21shares-bitcoin-etf/

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