DHS opens an investigation into Anchorage Digital Bank.
The DHS has launched an investigation into Anchorage Digital Bank for financial crime against the firm since it does business with large financial players like BlackRock and Cantor Fitzgerald. Although the details of the investigation are unclear, the task force has maintained contact with former Anchorage employees in the past few weeks.
The investigation was happening at a crucial time for Anchorage, which has been aggressively growing its footprint in the digital asset ecosystem. Diogo Mónica and Nathan McCauley founded Anchorage in 2017. The service provides crypto custody services to institutional investors. In 2021, Anchorage was the first digital asset company to get a federal charter from the OCC.
Despite its regulatory advantage, Anchorage has faced scrutiny before. In 2022, the OCC issued a consent order against the bank for deficiencies in its anti-money laundering (AML) and compliance programs. Consequently, the OCC compelled Anchorage to enhance its supervision.
Anchorage’s Growing Influence in Institutional Crypto.
It’s worth noting that the investigation comes at a time when Anchorage strengthens more and more ties with giants. Earlier this year, the world’s largest asset manager, BlackRock, picked Anchorage as the custodian for its cryptocurrency exchange-traded funds (ETFs). Since their start in early 2024, these ETFs have been gaining traction, with billions flowing in.
Anchorage began managing custody and collateral for Cantor Fitzgerald’s digital asset operations as of March 2025. Anchorage has over $50 billion in assets under management. It is a key player in the competitive crypto custody market, which includes both crypto-native firms and traditional banks like Citi and BNY Mellon vying for institutional clients.
It looks like 60% of institutional investors plan on investing more than 5% of their portfolio in digital assets, which further increases the demand for compliant and reliable custodians. Anchorage can meet these needs and is a leader in bringing traditional finance and digital assets together, the firm says.
Potential Implications of the Investigation.
Anchorage has denied wrongdoing and pledged full cooperation with the authorities. However, a lot hinges on the outcome. If Anchorage loses credibility or regulatory standing, it could affect other traditional financial institutions’ partnerships with crypto firms, too.
The crypto custody market is noticeably busy as more players compete for this lucrative opportunity. If Anchorage makes a mistake, a rival may take advantage of this opportunity, especially as institutional investors value security, compliance, and trustworthiness in custodians.
Balancing Growth and Regulatory Compliance.
The probe serves as a reminder to crypto players about the delicate balance between innovation and compliance. The new facilities opened in New York City in September will give the firm “full power” in the digital assets sector.
Anchorage is facing significant stakes. To ensure future success, the firm must navigate the investigation while expanding partnerships. Clearing them will strengthen Anchorage and solidify its position as a bridge to traditional finance. But any negative findings could change how institutions adopt crypto and raise questions about the maturity of the wider industry.
Conclusion
The news that Anchorage Digital is being looked into by the DHS shines a light on crypto businesses’ struggle to comply with the law while making new developments. While the business has made major progress in encouraging institutional acceptance of digital assets, the outcome of this inquiry may affect its path and the non-issue relationship between traditional finance and the crypto sector.
As the need for security and compliance with crypto custody services rises, Anchorage’s reaction to this investigation will be closely watched by regulators, competitors, and institutional investors. Currently, the firm remains one of the key institutions managing crypto assets. The outcome of the probe may decide the future trajectory of the institution and its digital assets.
