Anchorage Digital Expands Bitcoin DeFi with New Partnership

Anchorage Digital, the sole federally chartered crypto bank in the United States, is collaborating with Build on Bitcoin to enhance institutional access to decentralized finance (DeFi) on the Bitcoin network. This partnership marks a significant advancement for the Bitcoin DeFi sector, making it easier for institutions to engage with Bitcoin-based financial solutions.

Key Takeaways

Anchorage Digital partners with Build on Bitcoin to bolster Bitcoin DeFi access.
The collaboration will allow institutions to use BOB’s hybrid chain for DeFi engagement.
BOB combines the strengths of Ethereum's DeFi innovation with Bitcoin’s robust security.
The total value locked in Bitcoin DeFi protocols has dramatically surged, reaching an all-time high of $11.5 billion in October 2025.
Institutional players, such as BlackRock, are already leveraging Anchorage’s custodial services for crypto assets.

An Image Of Bitcoin DeFi Set For Anchorage Digital Support

Anchorage Digital Advances the Bitcoin DeFi Landscape

Anchorage Digital is making headlines as it becomes the preferred custodian for institutions seeking to venture into the decentralized finance sector, particularly on Bitcoin. By joining forces with Build on Bitcoin, Anchorage aims to offer better institutional access to DeFi features through BOB’s innovative hybrid chain.

BOB utilizes a zero-knowledge rollup technique that merges Ethereum’s DeFi advancements with Bitcoin's notable security features. This collaboration positions Anchorage Digital to provide regulated access to the platform, allowing institutions and asset holders to tap into the Bitcoin finance (BTCfi) ecosystem through BOB's native token available on Anchorage Digital Bank N.A. and Anchorage Digital Singapore. The former operates as a federally chartered crypto bank in the U.S, while the latter is recognized as a Major Payment Institution regulated by the Monetary Authority of Singapore. Anchorage also facilitates support for BOB via its self-custody wallet, Porto.

Boosting Bitcoin's DeFi Ecosystem

Prominent institutions, including BlackRock and Cantor Fitzgerald, are already utilizing Anchorage Digital’s crypto solutions. For instance, BlackRock appointed Anchorage as a custodian for its spot exchange-traded fund, the iShares Bitcoin Trust ETF, back in April.

The commitment to support BOB signifies one more enhancement in the burgeoning Bitcoin DeFi ecosystem. According to data from DeFiLlama, the total value locked (TVL) in decentralized finance protocols on Bitcoin is currently above $9.33 billion. Remarkably, the TVL for the underlying network of Bitcoin, which boasts a market cap exceeding $2 trillion, stood at around $4.6 billion in November 2024. Since then, the ecosystem has seen impressive growth, doubling in size, with the TVL peaking at $11.5 billion in October 2025.

Providing custody support for BOB not only represents a leap forward for institutional engagement but also bolsters overall adoption across the BTCfi landscape. Both institutions and retail investors have the opportunity to earn yield on their BTC holdings through platforms like BOB, which now showcases a total value locked of over $250 million.

According to DeFiLlama, the majority of the assets locked in Bitcoin DeFi networks are housed within the restaking protocol Babylon, which holds over $5.68 billion. Additionally, Lombard Finance and Threshold Network, which support both Bitcoin and Ethereum, currently manage assets totaling $1.18 billion and $606 million, respectively.