Anchorage Digital, the crypto platform for institutions, announced support for Bitcoin (BTC) staking on the Babylon bitcoin staking protocol, which is expanding its staking capacity with the beginning of Cap-3 in its mainnet Phase-1.
Cap-3 reportedly removes limitations and enables institutional participation.
BTC staking marks a frontier in digital asset innovation. It allows BTC to be staked natively on the Bitcoin network to “provide proof-of-stake security with the ability to collect staking rewards.”
Through Anchorage Digital, institutions can now access a gateway to participate in the Bitcoin secured networks.
Nathan McCauley, CEO and Co-founder, Anchorage Digital said that they are committed to driving innovation in the digital asset space and providing clients with a secure and “compliant pathway to participate” in the future of decentralized finance.
McCauley added that their support for Babylon BTC staking ahead of the Cap-3 launch “exemplifies this commitment, enabling their institutional clients to participate in the evolution of Bitcoin and collect rewards while doing so.”
Custody, settlement, staking, and governance services are “offered through Anchorage Digital Bank National Association.”
For institutions participating in custody, staking, or governance with Anchorage’s Singapore entity, those services are offered via Anchorage Digital Singapore Pte Ltd.
Babylon is a project that focuses on Bitcoin security sharing protocols “with a vision of building a Bitcoin-secured decentralized world.”
Its development is the trustless and self-custodial Bitcoin staking protocol, which enables Bitcoin holders to “stake their BTC on Proof-of-Stake (PoS) systems such as PoS chains, L2s, Data Availability (DA) layers, etc, enabling them to earn staking rewards without the need for third-party custody, bridge solutions, or wrapping services.”
Babylon combines the security and adoption of Bitcoin with the efficiency and scalability of PoS systems, “increasing Bitcoin’s utility.”
Babylon was founded in 2022 by Stanford Professor David Tse and Dr. Fisher Yu.
Professor Tse is a member of the U.S. Academy of Engineering and is the inventor of the proportional-fair scheduling algorithm for wireless communications.
Babylon is reportedly led by a team of consensus protocol researchers and experienced layer 1 engineers.
As covered, Anchorage Digital is a crypto platform that aims to enable institutions to participate in digital assets via “custody, staking, trading, governance, settlement, and the industry’s security infrastructure.”
Home to Anchorage Digital Bank N.A., the only federally chartered crypto bank in the U.S., Anchorage Digital serves institutions via Anchorage Digital Singapore, Porto by Anchorage Digital, and other offerings.
The firm is funded by institutions including Andreessen Horowitz, GIC, Goldman Sachs, KKR, and Visa, with its Series D valuation over $3 billion.ota.
