Anchorage Digital Partners With Frgmnt to Expand On-Chain Stablecoin Services for Institutions

Anchorage Digital, a federally chartered U.S. crypto bank, is expanding on-chain financial services for institutional clients through a partnership with stablecoin protocol Frgmnt.

Cointelegraph reported on Sept. 11 that Anchorage Digital had partnered with Frgmnt to support fUSD and sfUSD on its custody platform. Institutional clients will be able to hold, mint, redeem and stake the tokens through Anchorage’s existing platform without entering into a separate custody agreement.

Frgmnt is a stablecoin protocol built on Base, Coinbase’s layer-2 network. It issues fUSD against USDC collateral and deploys the backing assets into on-chain lending markets. Users can stake fUSD to receive sfUSD and earn a share of the protocol’s yield.

sfUSD had an annualized yield of 13.32% as of Sept. 4. Frgmnt is currently operating as an invite-only beta service, and its total value locked stood at about $100,000, according to DefiLlama. The protocol plans to open public access and raise deposit limits starting Sept. 15.

Anchorage Digital is a federally chartered crypto bank supervised by the Office of the Comptroller of the Currency. In February, it raised $100 million from Tether at a $4.2 billion valuation.

More recently, the company has stepped up efforts to expand infrastructure that gives institutional investors access to on-chain assets and yield products. In January, it supported issuance of Tether’s U.S.-focused stablecoin USAt. In May, it partnered with Mexico’s Grupo Salinas to build blockchain-based dollar remittance and cross-border payments services.

It has also continued to add staking services. In April, it integrated with Marinade Finance to launch a Solana staking strategy. In July, it began supporting native staking for TRX, the native token of the Tron network.