• Hashnote Harbour will allow yields up to 40%, thanks to a variety of derivative strategies.
  • Participants can also create customized hedges to protect their assets or target specific yields.

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The U.S.-regulated cryptocurrency custodial firm anchorage digital offers clients yields up to 40% through a partnership with hashnote. This digital asset manager was built with the help of trading giants Cumberland & DRW.

According to a release, Hashnote Harbor is a derivatives strategy that delivers these returns without the assets leaving Anchorage Digital’s custody. Participants can ask for customized structures that target specific yields, or create custom hedges to protect their assets.

This tie-up will appeal to institutional investors who are looking for digital assets that generate yields without much credit, custody, or protocol risk.

Nathan McCauley, co-founder of Anchorage, said in an article that bringing some of the advantages of traditional finance to the crypto ecosystem would mean the best of both: decentralization and wide adoption of assets. There are wise and hard-won ways to set up things that traditional capital markets have figured out over the past seven or eight decades.

Both firms are well-established in the U.S.: Anchorage is a cryptobank with a federal charter from the Office of Comptroller of the Currency; Hashnote has been registered with the Commodity Futures Trading Commission as a Commodity Pool Operator.

McCauley adopts a philosophical approach to the dichotomy of state-regulated crypto custody providers and those who are supervised by the federal government.

He said that it’s “almost an American tradition” to say there are multiple ways to accomplish a task. You can see this from many angles. Whether it’s in the realms of policing or elections, or banking. All of these things are intertwined when you’re in a dual-sovereign situation. In some ways, it’s an instantiation in the crypto ethos decentralization. “I think it’s beautiful that there are multiple ways to answer a question.”

Sheldon Reback is the editor.