Anchorage Digital Will Now Let Custody Client DeFi Vote

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Anchorage Digital

Anchorage Digital, a firm focusing on crypto custody, will not let their institutional client raise their opinions regarding proposals related to tokens that they have without having to pay expensive gas fees. The news comes from a statement released on May 16th.

Anchorage Digital’s Newest Intention To Help More Clients

The statement reads that Anchorage Digital will integrate Snapshot, a gasless, off-chain client that supports multi-governance, to let the users in its community who hold tokens have their say regarding governance proposals that are related to the tokens they hold, without the need to pay any gas fees.

It explained that every vote will happen within the custody of Anchorage Digital without involving any fund movement. Snapshot’s other clients in the form of decentralized protocols include BitDAO, AAVE, and Lido (LDO). It chronicles the voting that takes place off the chain. This means there is no public record of the transactions on any blockchain.

As per Anchorage Digital’s words, this approach adds a convenient advantage. However, the tradeoff, it explains, comes as a guarantee on the chain. The enforcement responsibility of the voting is usually left to multi-signature that is operated by the team handling protocols.

Anchorage claims that over 60 tokens of ERC-20 are currently supported. As such, it is planning to let every kind of ERC-20 token that may be applicable in the future be supported. In October 2021, Anchorage Digital made an announcement regarding its operations extending to Asia. It included 5 institutional partners newly included. The list included FBG Capital, Bitkub, and DreamTrade.

The announcement stated that consumers in Asia had enthusiastically adopted crypto. More recently, Snapshot was employed to gather votes from token-holders of LDO and AAVE regarding the latest upgrade of the protocols or proposals regarding their governance.