Anchorage receives charter to open crypto custody shop in South Dakota

Cryptocurrency firm Anchorage announced that it received a license from the state of South Dakota for a new subsidiary.

As per a press release, the Anchorage Trust Company obtained a trust company charter from the South Dakota Division of Banking and will be headquartered in Sioux Falls.

“Our Division of Banking should serve as a model for how governments can study and learn about digital currencies, while at the same time allowing pioneering companies like Anchorage to innovate and try out new products and services,” U.S. Senator Mike Rounds of South Dakota said.

Anchorage purports to offer unique custody solution, in which clients can use keys for transacting, auditing, staking, voting and doing other activities in real-time without the need to remove assets from so-called cold storage, according to The Block.

Calling itself a “smart storage” solution, the Anchorage Trust Company claims to be the first Qualified Custodian that use neither hot wallets nor cold storage, thus getting rid of risks of exposing private keys.

The South Dakota Division of Banking will be tasked to monitor the company’s finances, operations, and compliance in the exercise of fiduciary powers.

Nathan McCauley, Anchorage Co-Founder and CEO, also praised the latest initiative, saying that South Dakota struck the right balance of developing a resilient regulatory regime and encouraging trust industry growth by implementing innovative trust laws.

The recent move follows after Anchorage secured $40 million in series B funding led by Visa and Blockchain Capital. The funds will be used to help its clients attain their goals by investing in support for all assets, enabling participative features, and unlocking financial services beyond custody.