Payment processor Visa along with specialist VC firm Blockchain Capital helped Anchorage, an institutional custodial service, raise nearly $40 million in capital at an undisclosed valuation.
Visa recently launched a cross border remittance network with a pseudo-distributed ledger. This move shows their optimism that more institutions will look to gain exposure to crypto, as reported by Fortune, July 10, 2019.
Institutional Custody on the Rise
Visa and Anchorage are both members of the Libra consortium, Facebook’s controversial crypto project. Anchorage’s role in Libra will most likely be with the Calibra wallet as it is going to be rolled out as a payment method, drawing in the use of secure, self-custodial software.
This marks Visa’s second investment in a cryptocurrency startup after their round in Chain almost four years ago.
Anchorage was relatively less known until it appeared alongside banking stalwarts like Mastercard, Visa, and PayPal in the group of companies that are forming the Libra consortium.
Terry Angelos, Visa’s head of fintech, said Visa is interested in supporting companies like Anchorage that are helping to build the necessary infrastructure to the growing ecosystem of digital assets. In his opinion, Anchorage is building a foundation to support the new age of financial services.
Diogo Monica, a co-founder of Anchorage, stated that they have been working with Facebook to help design the technical layout of Libra since day one. Monica and his co-founder Nathan McCauley have known each other since they both worked in the fintech department of Square.
Custody has become a popular game these days with Coinbase and BitGo raking in most of the big money. Newer firms like Anchorage will have to separate themselves with something unique to stand a chance in draining business from these more substantial brands.