Institutions in Anchorage now have the ability to stake Starknet, aiding in network security and potentially earning rewards.

In a significant move for the world of decentralized finance, Anchorage Digital, a U.S.-federally chartered crypto bank, has announced the launch of custody and staking services for Starknet's native token, STRK. This collaboration with the Starknet Foundation is expected to unlock new opportunities for institutions to participate in the evolving decentralized finance landscape.

The service targets institutional investors, providing a secure platform for them to stake their STRK tokens and earn rewards. The annual percentage rate (APR) on offer for staking STRK is a competitive 7.28%, higher than prevailing U.S. Treasury yields, which currently sit between 4% and 4.5%.

Starknet, the seventh-largest Ethereum layer 2 scaling solution, boasts an impressive $545 million in assets bridged to its platform. The service enables institutions to securely stake their STRK tokens and earn rewards, making it an attractive proposition for those looking to diversify their investment portfolios.

James Strudwick, the Executive Director of the Starknet Foundation, expressed confidence that this collaboration will drive greater institutional adoption of Layer 2 scaling solutions like Starknet. He believes that the partnership with Anchorage Digital will play a crucial role in making these solutions more accessible to institutional investors.

The institution that Anchorage Digital has gained as a client for custody and staking services for the native token STRK of Starknet is StarkWare. This partnership underscores the growing interest among institutions in the blockchain and cryptocurrency space.

With a September rate cut by the U.S. now firmly priced in with 98% odds, and U.S. Treasury yields potentially dropping further in just two weeks, the attractive returns offered by staking STRK could prove increasingly appealing to institutional investors.

This development marks a significant step forward in the adoption of Layer 2 scaling solutions by institutional investors, and it is expected to pave the way for further collaborations and innovations in the decentralized finance sector.

Institutions in Anchorage now have the ability to stake Starknet, aiding in network security and potentially earning rewards.