It appears that we are in a world where huge Wall Street institutions are holding and staking cryptocurrencies. This is not just crypto daydreaming anymore; it’s increasingly happening now.
Anchorage Digital taps into TRON, providing institutional support
On Thursday, Anchorage Digital, a federally chartered crypto bank in the US, announced its support for Justin Sun-linked TRON blockchain, beginning with institutional custody for TRX, the native token of the blockchain network. The crypto bank also has plans to expand into TRC-20 assets (a technical standard on the TRON blockchain) and native staking.
This move does not mean Anchorage Digital is directly boosting TRON; instead, they are providing institutions with a safe and regulated way to hold, stake, and use TRON assets. However, allowing institutions to grab TRON through the crypto bank means the blockchain platform also earns benefits like more network participation and liquidity.
Notably, the San Francisco-based Anchorage Digital is not just any crypto company; it is the first federally chartered cryptocurrency bank in the US. The bank earned this title in 2021. Since then, it has been offering regulated custody, infrastructure, and staking services to institutional clients aiming for crypto exposure.
TRX is back to receiving onshore solutions
Before receiving the support from Anchorage Digital, most of the custody solutions for TRON flowed from non-US-regulated or offshore providers. That means institutions were always required to interact with non-federal chartered third-party wallets or exchanges.
This sometimes created compliance issues. However, with the arrival of support form Anchorage Digital, institutions can now breathe easy. For big institutions, custody does not mean just holding private keys. They also approach a regulated custodian that follows proper regulations.
Why Wall Street should trust Anchorage Digital?
We frequently talk about traditional finance integrating with decentrlaized fiance and its beautiful consequences. However, several TradFi financial institutions have been cagey about crypto due to regulatory uncertainty and custody concerns.
To wipe out these concerns, Anchorage Digital has its own advantages as a chartered crypto bank in the US. The bank should always comply with the US banking standards, KYC practices, anti-money laundering laws, and other frameworks.
Now, look at the TRON blockchain. This is one of the key platforms that fuel stablecoin transactions. TRON handles billions of USDT and USDC transactions, showing institutions chasing crypto can access stablecoins with confidence.
Additionally, when the crypto bank allows for native staking, institutions can participate in TRON’s consensus mechanism and earn rewards.
Last year, Ripple applied for a US national bank charter, racing with Anchorage Digital and stablecoin issuer Circle. The firm has received preliminary approval for a national trust bank charter, but final approval is still pending.
