Anchorage Digital, a U.S. chartered crypto bank, has introduced custody and staking support for Starknet's native token, STRK, to meet the growing demand from institutional investors for yield-generating digital assets. The announcement, made on Wednesday, highlights that staked STRK is currently offering an annual percentage rate (APR) of 7.28%.
Anchorage Digital has been providing STRK custodian services since January and is now expanding the token's utility. According to the company, this move opens the door for institutional custody and staking of STRK, building on Anchorage Digital's long-standing relationship with Starknet.
Starknet is a layer-2 scaling network built on Ethereum that uses zero-knowledge proofs for transactions. Staking was introduced to the network earlier in the year as part of its decentralization roadmap, enabling STRK holders to secure the protocol and earn rewards. Staking on Starknet involves locking up STRK tokens in a secure protocol, which helps maintain the network’s integrity. Users can either stake directly or delegate their tokens to trusted validators. By staking STRK, users contribute to the network's security and operational efficiency, making it more resilient against attacks and improving its transaction processing capabilities.
The launch of STRK staking by Anchorage Digital comes at a time when yield-bearing crypto products are increasingly competing with traditional financial products. U.S. Treasurys, traditionally considered a safe investment, are currently yielding between 4.0% and 4.5%. However, with markets anticipating a potential rate cut in September, the prospect of lower returns from traditional investments could make crypto staking more attractive for investors.
While other U.S. banks like JPMorgan and BNY Mellon are focusing their blockchain strategies on tokenization, staking is gaining traction as a yield product. It's also considered a driver behind the increasing popularity of Ether treasury funds. The Ethereum staking entry queue has recently reached its highest level since the Shanghai upgrade in 2023, with over 860,000 ETH (approximately $3.7 billion) waiting to be staked.
Staking involves locking up crypto assets to help secure a blockchain network in exchange for rewards, and it has been gaining traction as institutions enter the crypto space. Anchorage Digital's support for STRK staking provides institutions with a secure way to custody and stake STRK, collect rewards, and help strengthen the Starknet network.
Anchorage Digital is a regulated cryptocurrency platform that provides institutions with integrated financial services and infrastructure solutions. It is the first federally chartered crypto bank in the U.S.. Anchorage Digital offers secure custody, regulatory compliance, product breadth, and client service. Valued at over $3 billion, Anchorage Digital is funded by institutions including Andreessen Horowitz, Goldman Sachs, and Visa.
Starknet's integration of Bitcoin staking into its ecosystem is under consideration, with a community vote approving the development. The integration would allow wrapped Bitcoin assets to participate in the network's staking system, with Bitcoin holding a 25% weighting in staking power and STRK holding the remaining 75%.
Starknet is undergoing upgrades to enhance its decentralization and economic sustainability. Staking v2 is a foundational upgrade addressing critical gaps identified in Staking v1. All community members and STRK holders can participate in Starknet staking as either a validator or a delegator.
