Anchorage unlocks onchain lending using off-chain collateral via Spark

Anchorage Digital, looking to expand the ways its custody clients can put their assets to work, has partnered with Spark to enable onchain lending without moving their holdings out of offchain storage.

“This model unlocks a critical new pathway for institutional borrowers that want access to DeFi-native liquidity but are not yet comfortable moving collateral fully on-chain,” Anchorage wrote in a statement on Thursday. 

Through Anchorage Digital, borrowers will be able to interact with Spark — a DeFi credit solution associated with Sky (formerly MakerDAO) — while keeping their BTC collateral held off-chain at Anchorage Digital Bank. 

As more crypto firms enter the licensed crypto-banking sector, Anchorage, the first crypto-native firm to receive an OCC banking charter, has been expanding its product suite, including building out a wealth management team and jumping into token lifecycle management.  

Although the major crypto custodian has not filed for an initial public offering, many investors suspect the firm, founded in 2017, could be gearing up for a public listing. Custody competitor BitGo submitted IPO documentation earlier this week, while exchanges like EU-based Bitpanda, U.S.-based Kraken, and Hong Kong-based HashKey are also looking to go public in their respective regions. 

Onchain lending using off-chain collateral

Under the arrangement, Anchorage’s collateral and settlements platform, Atlas, will act as collateral agent to Phoenix Labs, the primary R&D firm behind Spark. Spark is a non-custodial blockchain program that allows users to lend onchain assets to earn interest, or borrow capital, particularly stablecoins, against over-collateralized deposits.

While Phoenix will take “direct legal title” over the pledged assets, Atlas will oversee the disbursements, including monitoring loan-to-value ratios, processing payments, issuing margin calls, and executing liquidations.

“Institutions want access to the most efficient pools of capital in crypto, but they also require operational rigor, custody, and risk management they can trust,” Anchorage CEO Nathan McCauley said. “Atlas collateral management allows DeFi protocols like Spark to meet institutions where they are—without compromising on transparency, controls, or speed.”

Anchorage noted that this tie-up “demonstrates how DeFi lending protocols can expand beyond crypto-native users” to serve “institutional demand at scale.” By “outsourcing” collateral management functions, like loan health appraisal and risk management, protocols can "focus on capital formation and market design while reaching a broader class of borrowers previously hesitant to engage directly with DeFi.”