Anchorage has advanced its institutional custody services into the Bitcoin layer-2 ecosystem using Stacks.
Leading L2 solution for Bitcoin, Stacks, just achieved a significant milestone with their Nakamoto update.
Through this collaboration, Stacks becomes the first platform to incorporate Anchorage Digital Bank N.A., providing custody services to STX holders.
Anchorage Digital formally entered the Bitcoin L2 ecosystem on September 4th, when it revealed that it had introduced crypto custody support for STX. Nathan McCauley, chief executive officer and co-founder of Anchorage Digital:
Layer 2s like Stacks are advancing a new vision for the Bitcoin ecosystem—and institutions are taking notice. As the crypto ecosystem continues to expand, we are committed to providing safe, secure, and regulated access to innovative networks like Stacks. We’re pleased to offer access to qualified custody for Stacks via Anchorage Digital Bank N.A.”
The Growing Bitcoin L2 Ecosystem
In recent months, institutional demand for Bitcoin has spiked, solidifying its position as the leading digital asset in the market.
This awareness and demand have been fueled in part by new prospects provided by layer-2 networks, the Bitcoin market environment that analysts believe presents a significant opportunity.
Prominent venture capital firms have supported multiple L2 Bitcoin initiatives. In the second quarter of 2024, projects developing Bitcoin L2 solutions received over $94.6 million, or 42.4% of investments in the L2 market, according to a recent report.
The market is focusing on new use cases as more initiatives attempt to improve Bitcoin’s scalability and contribute to increasing BTC utility.
Stacks is one of the initiatives that might open up an ecosystem with over $800 billion in latent capital. Stacks launched its mainnet in 2021.
The Nakamoto update for the project is essential to opening up Bitcoin’s decentralized finance applications. Its sBTC token will be necessary for applications such as gaming and Bitcoin DeFi.
