Anchorage Digital Asset Custody Provider Adds 5 New DeFi Tokens

The Anchorage Digital Asset custody provider has added five new defi tokens to its platform including UNI, the Uniswap token, as a secure storage product as we are reading in the latest crypto news.

The Anchorage digital asset custody provider now supports custody of five new DeFi tokens including Aave, BAL, UNI, YFI, and NXM. The five Defi tokens are used as votes to control the governance of their projects and by adding them, Anchorage makes it a lot easier for institutions and investment advisors go gain more exposure to the DeFi ecosystem. The Visa-backed crypto custody service added five new DeFi tokens as an idea to make it easier for institutions and financial advisors to gain more exposure to the emerging alternative financial ecosystem. It also added tokens from the decentralized exchange Balancer and the lending platform Aave.

"We’re excited about the potential of the space and the myriad services and capabilities decentralized financial tools have yet to unlock." –@diogomonica

Full announcement: https://t.co/DX1Qeaj4Ct

— Anchorage (@Anchorage) September 24, 2020

These five tokens represent a tradeable stake in the governance of the Defi protocols themselves and they have garnered billions in user funds allowing the holders to facilitate the token swaps and to also generate loans or earn interest on deposited assets. the platform holds keys to digital assets in secure settings on behalf of the customers. The new additions should make it easier for the clients as well as the new entrants to invest in the growing Defi products. According to DeFipulse, the value locked in DeFi has increased from less than $2 billion by the end of June to more than $9 billion today while Uniswap’s UNI token is up by more than 60% since the launch.

DeFi protocols operate using automated code that is inside the smart contracts. They also make it possible to deposit one set of crypto assets as collateral for a loan in a different crypto asset without having to go through a centralized institution such as a bank. However, the protocols operate automatically but the decisions like setting interest rates on deposits or creating partnerships require human intervention.

The governance tokens such as UNI represent voting rights for these decisions and by committing or staking a number of tokens, the users can bring proposals for a vote or cast ballots for a particular outcome. The governance tokens are tradeable among users which makes them lucrative as the value of the protocols increases. Anchorage has added support for other Defi protocols previously such as Compound and Maker in addition to the established digital assets such as Ethereum and Bitcoin. The latest addition signals a broader shift in the crypto landscape as the utility and earning generated by Defi pushes the assets into the investors’ portfolios.