Bitcoin News Today: Regulated Custody Paves Way for $11.5B Bitcoin DeFi Growth

Anchorage Digital, a U.S. federally chartered crypto bank, is expanding institutional access to Bitcoin-native decentralized finance (DeFi) by offering custody services for BOB, a hybrid Bitcoin–Ethereum ecosystem. This move provides a regulated gateway for institutions to engage with yield opportunities in BOB's $250 million total value locked (TVL) platform, according to an announcement shared with CoinDesk. The partnership underscores growing institutional interest in Bitcoin DeFi, which has seen TVL surge from $200 million to over $9.3 billion in the past 18 months.

The custody service, available through Anchorage Digital Bank N.A. and its Singapore-based arm, aligns with the bank's broader strategy to bridge traditional finance and blockchain innovation. BOB, a layer-2 network combining Bitcoin's security with Ethereum's DeFi capabilities, allows users to leverage BTC holdings for yield-generating activities. Anchorage also supports BOB via its self-custody wallet and holds a Major Payment Institution License from Singapore's Monetary Authority of Singapore (MAS).

This development follows a broader trend of institutional adoption in Bitcoin DeFi. Total value locked in Bitcoin-native DeFi protocols reached an all-time high of $11.5 billion in October 2025, up from $4.6 billion in November 2024. Anchorage's CEO, Nathan McCauley, highlighted the significance of smart contract advancements in unlocking new applications that blend Bitcoin's security with fresh utility, enabling institutions to participate in yield-bearing DeFi activities.

While the TVL growth represents 0.3% of Bitcoin's $2 trillion market cap, the expansion of regulated access points like Anchorage's custody services could accelerate adoption. BlackRock and Cantor Fitzgerald have already integrated Anchorage's solutions, including custodial services for the iShares Bitcoin Trust ETF. The bank's role in this ecosystem positions it as a critical infrastructure provider, addressing institutional demand for secure, compliant infrastructure in a rapidly evolving market.