Anchorage is the First Institutional Custodian to Support Cosmos ATOM
Anchorage clients can now hold Cosmos ATOM in their custody accounts, and buy and sell ATOM through Anchorage Trading. Anchorage is the first institutional crypto custodian to support Cosmos ATOM. Cosmos is a proof of stake network, and our clients will be able to participate in securing the network through staking — and earn rewards of additional ATOM for their efforts in validating the Cosmos blockchain.
“Anchorage’s support for ATOM custody means Anchorage clients will be able to take part in securing the Cosmos Network through ATOM staking. We’re excited to open the floodgates of user adoption through service providers like Anchorage.”
— Chjango Unchained, Head of Community at Cosmos & Tendermint
The goal of Cosmos is to connect different blockchains together in a single network, so they can communicate and interoperate with one another. ATOM is the Cosmos network’s native token, used for staking, governance, and for inter-blockchain communication (IBC).
Clients participate in Cosmos staking by delegating their ATOM to their validator of choice. To take ownership of ATOM rewards received from the network in return for staking, Cosmos is designed to require recipients to actively claim the rewards via an on-chain transaction using the asset-holding keys. ATOM holders may then delegate their rewards so that they too can be used for staking — and this operation also requires use of the asset-holding keys.
The need to delegate rewards continuously makes participating in Cosmos staking incompatible with cold storage, because it requires recurring human processes that are operationally burdensome and expose assets to risk. Some cold storage custodians have gone so far as to publicly advise protocol designers to engineer their projects to be more compatible with the constraints of cold storage custody. We believe custodians should not hold back the evolution of blockchain technology or compel new protocols to compromise their vision. As crypto continues to move forward, custodians should adapt to protocol requirements, not the other way around. We’re proud that the Anchorage platform lets ATOM holders participate in staking securely, without the forced trade-offs of cold storage.
Whether you’re an ATOM holder or you’re interested in adding ATOM to your asset portfolio, we’re here to help. If you’d like to learn more about custody, trading, or staking support for your assets of choice through Anchorage, please get in touch.
About Anchorage Digital
Anchorage Digital is a crypto platform that enables institutions to participate in digital assets through custody, staking, trading, governance, settlement, and the industry’s leading security infrastructure. Home to Anchorage Digital Bank N.A., the only federally chartered crypto bank in the U.S., Anchorage Digital also serves institutions through Anchorage Digital Singapore, Porto by Anchorage Digital, and other offerings. The company is funded by leading institutions including Andreessen Horowitz, GIC, Goldman Sachs, KKR, and Visa, with its Series D valuation over $3 billion. Founded in 2017 in San Francisco, California, Anchorage Digital has offices in New York, New York; Porto, Portugal; Singapore; and Sioux Falls, South Dakota. Learn more at anchorage.com, on X @Anchorage, and on LinkedIn.
This post is intended for informational purposes only. It is not to be construed as and does not constitute an offer to sell or a solicitation of an offer to purchase any securities in Anchor Labs, Inc., or any of its subsidiaries, and should not be relied upon to make any investment decisions. Furthermore, nothing within this announcement is intended to provide tax, legal, or investment advice and its contents should not be construed as a recommendation to buy, sell, or hold any security or digital asset or to engage in any transaction therein.
Anchorage Digital Bank National Association offers fiat custody services through the use of an FDIC-insured, licensed sub-custodian.
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