Crypto Custodian Anchorage Adds Support for XRP
Anchorage, an institutional cryptoasset custodian and member of the Libra Association, has announced support for Ripple’s XRP token in its custody basket. As one of the largest cryptocurrencies in the space, it is a mystery as to why Anchorage is only now adding XRP custody to its portfolio of offered services, April 3, 2020.
Support for XRP and Ripple Services
Many crypto custodians just hold and secure customer assets. Anchorage is taking the concept of custody for a new spin by adding token custody and integrating the functionality offered by the token as well.
Anchorage won’t just add XRP, but it will also – in the future – add functionality for Ripple’s services, per the announcement. For the time being, institutional investors with the custodian will now be able to securely hold their XRP.
Diogo Monico, CEO of Anchorage, believes that demand for XRP usage could drive the company to support complementary features:
“Anchorage supports custody for XRP today, and we look forward to supporting additional services in the future. Furthermore, the flexibility of the Anchorage platform will allow us to support more advanced XRP functionality like payment channels should customer demand require it.“
Custody War Is Brewing
Anchorage raised $40 million from Visa to set-up shop in 2019. Their competition includes the likes of BitGo, Xapo, Coinbase Custody, and Gemini amongst others. Coinbase acquired Xapo, making them the single largest custodian for institutions.
As more institutions enter crypto, the intensity of competition between custodians will grow. Whoever can offer the best fee schedule and ease-of-use will emerge as the clear winner. Coinbase currently stands out, as they have OTC trading and several other value-add services on their platform.
BitGo, one of the first crypto custodians, has been racing to challenge Coinbase by adding more functionality to its platform. Anchorage is fairly new and will have to significantly stand out to capture market share dominated by BitGo and Coinbase.
If Binance enters the custody space, a lot of smaller players could get shaken out because of the functionality they bring to the table, just like Coinbase. Either way, the institutionalization of crypto will turn custodians into one of the most valuable niches, as well as the primary battleground for strong infrastructure.