crypto.news
Digital asset bank Anchorage has taken a major step in expanding its institutional custody services into the Bitcoin layer-2 ecosystem through a partnership with Stacks.
Stacks (STX) is a leading L2 solution on Bitcoin (BTC) that recently marked a huge milestone with its Nakamoto upgrade. This partnership makes Stacks the first platform to integrate Anchorage Digital Bank N.A., offering STX holders access to custody services.
In an announcement on Sept. 4, Anchorage Digital announced that it had added crypto custody support for STX, marking its official entry into the Bitcoin L2 ecosystem.
“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.”
Nathan McCauley, chief executive officer and co-founder of Anchorage Digital
The growing Bitcoin L2 ecosystem
Bitcoin continues to dominate the market as the top digital asset, with institutional demand spiking in recent months. Part of this recognition and demand has come amid new opportunities through layer-2 networks – a market ecosystem on Bitcoin that experts predict is a major opportunity.
Top venture capital firms have backed several Bitcoin L2 projects. According to a recent report, more than $94.6 million, or 42.4% of investments in the L2 space, went to projects building Bitcoin L2 solutions in the second quarter of 2024.
As more projects look to enhance Bitcoin’s scalability and help expand BTC utility, the market is eyeing new use cases. Stacks, which launched its mainnet in 2021, is one of the projects experts say could unlock an ecosystem with an estimated latent capital of over $800 billion.
The project’s Nakamoto upgrade is crucial to the unlocking of decentralized finance applications on Bitcoin. Its sBTC token will be crucial in Bitcoin DeFi, gaming, and other applications.