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XION, the first walletless Layer 1 blockchain focused on making Web3 universally accessible, is integrating with Anchorage Digital, the only crypto bank to hold a charter from the US Office of the Comptroller of the Currency. The integration with the federally chartered institution is expected to enhance institutional interest in crypto as investors will have a regulated and secure avenue to stake, custody, and trade XION.
Major global brands like BMW, Amazon Prime, The North Face, and Uber already use XION’s blockchain technology. Clients of Anchorage Digital can acquire, stake, hold, and manage XION without relying on centralized exchanges. The integration ensures compliance with legal requirements, which is a key benefit in the context of persisting concerns about regulatory uncertainty.
Anchorage Digital provides institutional investors with blockchain exposure through high-quality custody and asset management services. The bank’s Institutional clients can also stake XION directly, contribute to network security, and passively collect rewards. Anchorage’s platform provides VC firms and asset managers with multiple solutions for treasury management and liquidity to manage XION exposure.
Institutional interest in crypto is at a record high
The integration comes against the backdrop of a historic peak in institutional interest in digital assets. New research from Coinbase and EY Parthenon reveals that 83% of surveyed investors intend to increase their exposure to crypto in 2025.
They are convinced that crypto will continue to offer attractive returns and remain confident in DeFi and stablecoins’ prospects. The vast majority of institutional investors plan to allocate 5%+ of their AUM to crypto in 2025, proving that it has transitioned beyond a niche asset. 73% of investors currently hold cryptocurrencies besides Bitcoin and Ethereum.
While fewer than a quarter (24%) currently engage with DeFi, that number is predicted to reach 75% by 2027. The most appealing use cases in DeFi are staking, derivatives, and lending, followed closely by yield farming, access to altcoins, and cross-border settlements.
The challenges: A developing regulatory landscape, volatility, and custody
Investor interest in compliance is equally pronounced. Many investors believe greater regulatory clarity will unlock new opportunities in digital assets, especially in terms of custody. The primitive regulatory framework is still considered the industry’s primary challenge. 52% of investors cited it as their top concern, followed by volatility and secure custody, with 47% and 33%. 68% of investors expect the crypto economy to expand as regulatory clarity grows.
The main concern regarding legal frameworks or lack thereof is that there has never really been genuine, protocol-level crypto regulation; it has only existed through the threat of lawsuits. That is why some institutional investors remain on the sidelines.
One cannot claim the sector hasn’t seen its fair share of lawsuits. In 2019, the US Securities and Exchange Commission (SEC) sued Telegram over its initial coin offering of GRAM, claiming the token was an unregistered security. The social medium had raised $1.7 billion through the ICO. It lost the case and was forced to refund investors and abandon its TON blockchain. Despite the setback, the network boasts a vast market today.
Block.one also faced accusations from the SEC in 2019, having raised $4 billion in an allegedly unregistered ICO. The platform ended up paying a $24 million fine to settle the case. Perhaps the longest-running lawsuit has been SEC vs Ripple, fitting into the broader pattern of targeting companies that raise funds without registering their tokens.
Ripple has always claimed that XRP isn’t a security but a digital asset developed for high-speed, affordable cross-border payments. They argue that XRP works like a bridge currency and is mainly used for real-world transactions rather than as an investment tool meant to generate profit. The comparison to Ether and Bitcoin has been a major point in Ripple’s defense. The SEC has ruled that the two biggest cryptocurrencies by market cap are not securities because they are sufficiently decentralized.
Greater regulatory clarity and a lighter touch
With the MiCA framework adopted in 2024 and the upcoming DORA (Digital Operations Resilience Act), European companies can benefit from greater clarity on how to conduct business. Regulatory attitudes have undergone a seismic shift toward supporting crypto under the second Trump administration in the US. That has built new momentum for cryptocurrency legislation, including on stablecoins.
President Trump declared crypto a national priority in an executive order and pledged support for the responsible development and use of blockchain technology and digital assets across economic sectors. The industry awaits regulations that are tailored to digital assets, and the SEC’s pause on high-profile lawsuits is another sign of the lighter touch President Trump has promised.
An equally encouraging development involves increasing collaboration between banks and Web3 platforms, of which XION’s integration into Anchorage Digital is a prominent example. Anchorage Digital works closely with regulators to fulfill compliance requirements and sets new standards for digital asset operations under federal oversight.
These positive tendencies may mitigate concerns about market volatility, but the threat of centralization remains open. Thirty years ago, conservative investors opted to buy stock in companies that were more established than Google, Amazon, Microsoft, or Apple, and after the tech crash, they were glad they had.
In hindsight, those stocks would have ended up being wildly profitable even for investors who had bought them at the peak of the tech bubble. The main difference is that the present tech boom is grounded in the ethos of decentralization, which is diametrically opposed to the environment in which legacy tech companies operate. Stakeholders hope Web3 won’t develop in the direction of centralization like Web2 did.
