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Anchorage Digital Considers Cancelling Litecoin Custody Support and Reducing Focus on NFT

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Anchorage Digital Considers Cancelling Litecoin Custody Support and Reducing Focus on NFT

On March 15th, a spokesperson for the crypto custody bank Anchorage Digital revealed that it is currently considering canceling the utilization asset custody support, including Litecoin, because the company needs to provide services to customers in the current and expected markets in areas of greatest concern. In addition, the spokesman also revealed that Anchorage Digital will reduce its focus on NFT. He said, “Anchorage Digital’s business has low institutional demand for certain types of digital assets (such as NFT), so it will reduce its focus on these digital assets, which means that after the recent release of NFT features, it will reduce investment in institutional level NFT features.” However, according to data from DappRadar, despite the low adoption rate of institutional NFT, However, retail investors’ NFT trading volume remains relatively strong, with a trading volume of over $2 billion in February 2023.  

Anchorage Digital: Consider eliminating low utilization digital asset hosting support

Analysis based on this information:


Anchorage Digital, a crypto custody bank, is reportedly considering canceling the custody support for certain assets, including Litecoin, due to its need to provide services to customers in areas of greatest concern. This announcement was made by a spokesperson for the company on March 15th. In addition, Anchorage Digital will also be reducing its focus on NFT due to low institutional demand for such types of digital assets.

The decision to cancel Litecoin custody support and reduce focus on NFT is influenced by the need to prioritize customer service in areas of great concern. While these actions are understandable, they may have an impact on the investments of current users of Anchorage Digital’s services. Litecoin holders may have to find alternative custody solutions to securely store their assets.

The reduction in focus on NFT is also surprising considering the recent hype surrounding the digital asset. However, the spokesperson explains that the company’s business has low institutional demand for such types of digital assets. This is understandable given that NFTs are relatively new and are primarily interesting to retail investors. However, despite the low adoption rate of institutional NFT, retail investors’ NFT trading volume remains strong, with a trading volume of over $2 billion in February 2021, according to DappRadar.

Overall, Anchorage Digital’s decision to cancel Litecoin custody support and reduce focus on NFT is a reflection of the company’s need to adapt to the trends and demands of the market. While it may negatively affect some customers, it is a necessary move to ensure that the company can provide high-quality services to those in areas of greater need.

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