A press release announced that the Anchorage cryptocurrency custodian for institutional investors led by venture fund Andreessen Horowitz was launched, following a $17 million funding round.

PayPal co-founder Max Levchin’s SciFi VC, venture company Khosla Ventures, Mark McCombe of investment firm Blackrock and others also took part in the series A funding round according to the press release.

In 2018, cryptocurrency custody was identified as an area that was lacking in the industry. The reason is that institutional investors simply won’t engage fully in the cryptocurrency space without full service, reliable and trustworthy custody solutions in place.

Anchorage has emerged in line with this trend.  It has the backing of some well-regarded entities in the world of financial technology and venture capital. The custodian is claimed to be more secure than cold storage in order to better support institutional investments, along with enabling active on-chain participation.

The cryptocurrency custodian claims to be based on the principles of easy access to assets, voting, auditing proof of existence, and quick transactions. Anchorage believes that large scale investments in digital assets, such as those from institutional players, will bring new growth to the blockchain space.

The co-founders’  Nathan McCauley and Diogo Mónica are optimistic that “usable and trustworthy institutional custody will bring new growth to the blockchain space – both because of the increase in capital from large scale investment in digital assets, and because securely custodied assets will serve as the foundation upon which to develop a rich and mature financial ecosystem”.

Andreessen Horowitz’s Crypto Interest

Andreessen Horowitz is actively investing in crypto startups. In November, the California-based fund participated in a $15 million funding round for Dapper Labs, developer of the world’s most-used blockchain app CryptoKitties. Andreessen Horowitz also took part in the Series E equity financing round of U.S. crypto exchange and wallet provider Coinbase, which plans to use the $300 million raised to “accelerate” the adoption of cryptocurrencies.

Conversely, unnamed sources told Bloomberg earlier this month that Wall Street’s crypto plans are largely on hold, as cryptocurrency values have continued to fall into the new year. According to sources familiar with Goldman Sachs’ crypto business, the firm’s crypto activities have been too slow to be noticeable, and the company’s crypto non-derivative funds have attracted only 20 clients so far.