Chainlink and Anchorage launch CustodySync for custodial assets
Chainlink and Anchorage introduced CustodySync, a protocol that allows assets held by qualified custodians to access DeFi without moving the underlying holdings. The move targets roughly $700 billion in crypto assets currently locked in custody without direct DeFi access.
Chainlink announced CustodySync in partnership with Anchorage, a product designed to enable assets held by qualified custodians to interact with decentralized finance protocols while remaining in regulated custody. Under the model, a receipt token is created and deposited into a DeFi protocol, while the actual Bitcoin, ETH, or LINK remains in the custody of Anchorage, a custodian subject to ongoing regulatory review. The initiative targets approximately $700 billion in crypto assets currently sitting with qualified custodians that lack direct access to DeFi markets.
Andrew McCormick, head of institutional and market development at Chainlink Labs, stated that large institutions are increasingly inquiring about accessing DeFi for customer or corporate assets. He cited the Robinhood example, where zero commissions drove a three- to fourfold increase in trades, as a precedent for how competitive pressure from fintechs is forcing traditional broker-dealers to offer secure, compliant DeFi yield options to prevent deposit flight. McCormick argued that regulatory-compliant bridges like CustodySync are essential for institutions to compete with fintechs offering DeFi yields without compromising custody security.