• Written by: Mwongera Taitumu
  • Wed, 09 Apr 2025
  •   Estonia

BlackRock has partnered with Anchorage Digital for custodial services of its iShares Bitcoin Trust (IBIT). The addition of Anchorage as a custodian matches the increased institutional demand for digital assets. BlackRocks decision seeks to strengthen the security and resilience of their Bitcoin products as well as ensure improved flexibility for future operations. Anchorage Digital, a […]

BlackRock Expands Bitcoin Custody Network: Partners with Anchorage Digital

  • Anchorage Digital becomes an additional custodian for IBIT ETF.
  • Dual-custodian model boosts security, flexibility, and risk management.
  • BlackRocks partnership addresses institutional demand for crypto custody.

BlackRock has partnered with Anchorage Digital for custodial services of its iShares Bitcoin Trust (IBIT). The addition of Anchorage as a custodian matches the increased institutional demand for digital assets. BlackRocks decision seeks to strengthen the security and resilience of their Bitcoin products as well as ensure improved flexibility for future operations.

Anchorage Digital, a U.S. federally chartered digital asset bank, will support BlackRocks spot Bitcoin exchange-traded products (ETPs). Anchorage joined as an additional custodian through the Master Custody Service Agreement. Coinbase retains its role as the main custodian for the Bitcoin reserves held by the trust.

Dual Custodianship of BlackRocks Bitcoin ETF

The dual custodianship creates added protection and strengthens risk management. It provides additional security and reduces potential risks related to custodial services. The Master Custody Service Agreement requires Anchorage to use cold storage for private keys, insurance cover as well as address both blockchain forks and indemnification terms.

BlackRock decided to work with Anchorage because of the increased demand for access to digital assets. The IBIT ETF is the largest Bitcoin ETFs and has experienced major capital inflows. BlackRock aims to increase its Bitcoin reserve and expand its asset portfolio.

The addition of Anchorage demonstrates BlackRocks dedication to flexible business operations. The company utilizes several custodians to minimize potential risks related to single point of failure(SPOF). This approach makes the IBIT ETF more resilient which is BlackRocks main portfolio assets.

Anchorages Reliable Services

The partnership adds new custodial options but assets will not be immediately transferred to Anchorage. Coinbase will continue to control custodial operations while Anchorage serves as a backup custodian. Moreover, the core investment approach and fund structure of the IBIT ETF will not be altered.

Anchorage is regulated by the Office of the Comptroller of the Currency (OCC) which adds credibility to its regulatory compliance. The partnership improves the institutional-grade custodial solutions for digital assets. BlackRock continues to expand its custodial relationships to remain in tandem with changes in digital asset regulation.

Moreover, BlackRock will access Anchorages services such as staking, settlement and on-chain governance.These services will boost BlackRocks plan to link digital assets with mainstream finance.

The increased demand for digital assets infrastructure and secure custodial services show the widespread institutional acceptance of cryptocurrencies.