Purpose Investments Bolsters ETF Security with Anchorage Digital as Third Sub-Custodian

Quick Summary

Purpose Investments has appointed Anchorage Digital as its third sub-custodian, becoming the first Canadian digital asset ETF manager to utilize a three-custodian model. This move reduces single-point-of-failure risks for its C$2.4 billion crypto portfolio, providing institutional-grade security and bank-grade oversight for investors seeking regulated exposure to Bitcoin, Ether, and Solana.

How Does Purpose Investments Improve Digital Asset ETF Security?

Purpose Investments solves the custodial risk challenge by diversifying its asset storage across three independent, institutional-grade providers: Anchorage Digital, Coinbase, and Gemini. By implementing this three-sub-custodian model, the firm ensures that no single entity represents a total point of failure for its suite of eight digital asset funds. This structure is particularly vital for the C$2.4 billion in assets under management, providing a level of redundancy typically reserved for traditional high-finance instruments.

• Redundant Custody: Assets are split between three major regulated entities.
• Federal Oversight: Anchorage Digital Bank operates under the Office of the Comptroller of the Currency (OCC).
• Institutional Standards: The model mirrors the segregation-first philosophy used by global Tier-1 asset managers.

What Are the Benefits of In-House Staking and Carbon Tracking?

Purpose Investments solves the yield efficiency problem by operating its own validators for Ether and Solana through proprietary staking software. By bringing staking infrastructure in-house, the company ensures that 100% of staking economics accrue to unitholders rather than being diluted by third-party fees. This vertical integration extends to their environmental initiatives, as Purpose recently acquired the carbon-tracking software from Patch Technologies to manage its carbon-offset Bitcoin ETF (BTCC.J) directly.

“Running our own staking infrastructure means our unitholders keep more of the staking rewards than they would through a third-party staking provider, rather than sharing that value away,” said Paul Pincente, VP of Digital Assets at Purpose. This approach allows for direct control over rewards while maintaining the safety of bank-grade custody provided by Anchorage.

Which Funds Are Covered by the Anchorage Digital Partnership?

The digital asset ETF expansion applies to all Purpose funds holding physical assets, including Bitcoin (BTCC, BTCO), Ether (ETHH, ETHO), Solana (SOLL), and XRP (XRPP). This partnership ensures that regulated digital assets are protected by America’s first federally chartered crypto bank. By integrating Anchorage Digital, Purpose provides Canadian investors with transparent access to crypto markets through infrastructure built for institutional scale and regulatory compliance.

FF NEWS TAKE:

This move by Purpose Investments significantly moves the needle for digital asset ETF standards. While most issuers rely on a single custodian, Purpose is treating crypto with the same risk-mitigation rigor as a multi-billion dollar pension fund. By owning their staking and carbon-offset tech, they are also proving that the most successful fintech players in the next decade will be those who own their infrastructure rather than just white-labeling it.