Announced Wednesday, the moves mark an expansion in offerings for a corporation originally focused on providing institutions custodial services, because it continues to bet that adding more features like trading will carry crypto further into mainstream.
Merkle Data’s acquisition similarly expands Anchorage’s reach, consistent with the blog post. Framing the info team as a complement to its new trading service, Anchorage said Merkle Data will boost its quantitative chemical analysis and risk modeling capabilities.
The San Francisco-based startup has been building out its services for much of the past year. In October it added a governance platform for on-chain voting, months after introducing Stellar inflation and Tezos staking (called “baking”) to clients holding either crypto asset.
President Diogo Mónica sees these expansions as pivotal for the custodial firm he co-founded. In an opinion piece written for CoinDesk’s Year in Review series, he said, “whatever investors want to try to to with their assets – buy and hold, exit a serious position, actively trade, participate in staking and governance – the custodian are going to be involved.”
It is also a response to client expectations, said Nathan McCauley, Anchorage CEO.
“This is a component of a growing trend,” he said during a statement sent to CoinDesk. “Our clients are asking us to supply brokerage from day one, because they’re typically a part of an equivalent workflow. Clients buy assets then deposit them into custody, or withdraw assets from custody so as to sell them. When one provider can do both, it simplifies things for clients significantly.”
The trading service features from slight differences in comparison to the “majority” of over-the-counter desks operating today, Anchorage claims. Its platform uses a fee-based model rather than the prevalent principal structure.
Principal model trading allows brokerages to profit off the spread between an asset’s quote and cash price . Fee-based trading, on the opposite hand, makes money by commission. Anchorage said this is often a more transparent way of doing business.