Anchorage, a provider of crypto custodial solutions that also offers trading functions, has raised $350 million in a funding round that values the San Francisco-based company at more than $3 billion.
The investment marks the first time KKKR, a private equity giant, has made a direct equity investment in a crypto company. KKR did so via the firm's Next Generation Technology Growth Fund II. The fund focuses on growth-style investments in the technology sector.
Goldman Sachs, Alameda Research and Andreessen Horowitz also participated in the round. Joining in via funds and related managed accounts: Apollo, BlackRock, Blockchain Capital, Delta Blockchain Fund, Elad Gil, GIC, GoldenTree Asset Management, Innovius Capital, Kraken, Lux Capital, PayPal Ventures, Senator Investment Group, Standard Investments, Thoma Bravo and Wellington Management.
Anchorage, which holds a federal banking charter, has moved beyond its crypto custodial roots to also offer trading, staking, finance and governance functions.
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Most recently, Anchorage raised an $80 million Series C round led by Singapore sovereign wealth fund GIC in March of 2021 — continuing a growing trend of in-demand crypto companies raising multiple rounds in a relatively short period of time as demand from venture capitalists shows few signs of slowing.
Anchorage plans to use the money to invest in improving its infrastructure and also increasing its headcount in an effort to continue to build its client base, the company said. Anchorage has already grown its headcount by 175% so far this year.
"As a pioneer in enabling institutional investors to access digital assets, Anchorage has built a best in class, institutional grade digital asset platform that combines the best practices of both modern security and usability," said KKR executive Ben Pederson in a statement.