BlackRock Adds Anchorage Digital as Second Custodian for Bitcoin ETF

BlackRock, the world's largest asset manager, has expanded its digital asset custody services by adding Anchorage Digital Bank N.A. as a second custodian for its iShares Bitcoin Trust ETF (IBIT). This move, announced on April 7, introduces a dual-custodian model, with Anchorage Digital joining Coinbase, the existing custodian, to enhance the security and operational resilience of IBIT’s Bitcoin holdings. Anchorage Digital, the only U.S. federally chartered digital asset bank, will provide services such as digital asset custody, staking, settlement, and on-chain governance.

The partnership allows BlackRock to leverage these services, reflecting the growing demand for digital asset products among both retail and institutional clients. Robert Mitchnick, Head of Digital Assets at BlackRock, stated, “After a thorough evaluation, Anchorage Digital clearly meets these standards, and we are excited to be expanding our network of eligible digital asset service providers with the addition of Anchorage Digital.” This strategic addition may indicate BlackRock's expectations of increased Bitcoin holdings within IBIT and the need for operational redundancy.

The new arrangement introduces a dual-custodian structure, allowing for the maintenance of segregated custody accounts, which will be used for the safekeeping of Bitcoin reserves. This decision underscores the Trust's commitment to risk management amid its growth and the expansion of its digital asset footprint. The partnership comes as BlackRock recently received approval from the UK Financial Conduct Authority to operate as a crypto asset firm, allowing it to offer its Bitcoin ETP in the UK. The iShares Bitcoin ETP, trading under the ticker IB1T, began trading on Euronext Paris and Amsterdam with a temporary fee waiver.