According to recent reports, custodial service for institutions has been launched by a crypto startup. The firm has claimed the institutions to be more secure than cold storage that enables easy access to assets.

The company, Anchors Labs, reportedly raised around $17 million in series ‘A’ funding round which saw the participation of Blackrock’s Mark McCombe, Max Levchin, Khosla Ventures, Andreessen Horowitz, Blackrock’s Mark McCombe, and Elad Gil. The launch of Anchorage, a digital custodian, was announced by AngelList co-founder Naval Ravikant on 23rd January 2019.

Anchorage is designed to deliver all the benefits of asset accessibility including the ability to capture the yield from staking a cryptocurrency, confirming proof of existence, voting, and faster transactions. The form is co-founded by Nathan McCauley and Diogo Mónica ex-employee of Square’s encrypted credit card reader and ran Docker’s security team.

As of now, investors faced issued due to cold storage custody which is easily affected by human errors and does not provide access to the assets. Assets in the cost storage custody move slowly and also cannot be used for capturing yield, which in turn can lead to depreciation owing to dilution, according to a Medium post.

In a blog post, Mónica and McCauley said that there is institutional interest in the crypto niche, however, any company willing to store their assets are required to make a tradeoff between security and asset productivity.

Moreover, this tradeoff has caused several cold storage custodians like Kingdom Trust and BitGo to form collaboration with liquidity providers in which exchanges can be executed at a high speed without coins having to leave the vault.

However, it has not been made clear as for how Anchorage would like to allow clients to have the perks as details were not revealed in the blog post. In an interview with CoinDesk, a representative for Anchor Labs stated that although cold storage depends on people. Anchorage is the one of its kind’s custodian that has so far solved digital asset custody and eliminated human errors. However, she didn’t reveal as for how the company has solved human errors. The clients of Anchorage can move their respective assets within a short span of time, said the representative.

The founders of the Anchor Labs said that they formed the company has they experienced a demand from the digital asset finds for assistance managing their respective private in the safest manner.

As the company formed, it was able to understand the underlining issues and work steadily to solve the problem on the basis of the knowledge on the security principals. Without revealing the details, Mónica and McCauley said that Anchorage deploys the world’s best advanced as well as proven digital security ecosystem to support institutional investments while allowing active on-chain participation that conventional cold storage never allowed. The new custody thus formed can help grow the blockchain space by forming the basis of great financial ecosystem and influx of funds, said the co-founders.