Anchorage partners with Spark to offer on-chain lending using off-chain custodial assets

Anchorage Digital has partnered with Spark to deploy an onchain lending model for institutions, allowing clients to borrow while keeping collateral assets within an off-chain custody system.

Under the agreement, organizations can access DeFi liquidity through Spark – a credit solution linked with Sky ( previously known as MakerDAO) – while collateral assets, including BTC, are still stored at Anchorage Digital Bank. This model targets institutional investors who want to utilize DeFi liquidity but are not yet ready to move all collateral onchain.

In the partnership structure, Phoenix Labs – the developer of Spark – will hold direct legal ownership of the collateral assets. Anchorage’s Atlas platform acts as the collateral management system, overseeing loan-to-value ratios, handling payments, issuing margin calls, and executing liquidations when necessary.

CEO of Anchorage Nathan McCauley stated that organizations need efficient access to capital in crypto while maintaining high standards for custody, risk governance, and operations. The integration of Atlas allows DeFi protocols like Spark to meet these needs without sacrificing transparency or speed.

Anchorage believes this model demonstrates how DeFi lending protocols can expand beyond the crypto-native user base, reach large-scale institutional needs, and help protocols focus on market design and capital formation rather than on managing and operating collateral assets.