Anchorage partners with Spark to enable onchain lending with off-chain custody

Anchorage Digital has partnered with Spark to offer institutional borrowers access to onchain lending while keeping their collateral in off-chain custody.

Under the arrangement, clients can borrow through Spark — a DeFi credit protocol associated with Sky (formerly MakerDAO) — while their BTC collateral remains held at Anchorage Digital Bank. The model is designed for institutions seeking DeFi-native liquidity without fully moving collateral onchain.

Phoenix Labs, the core developer behind Spark, will take direct legal title to the pledged assets. Anchorage’s collateral and settlements platform, Atlas, will act as collateral agent, overseeing loan-to-value monitoring, payments, margin calls, and liquidations.

Anchorage CEO Nathan McCauley said institutions want access to efficient crypto capital markets but also require trusted custody, operational rigor, and risk management. Atlas allows DeFi protocols like Spark to meet institutional borrowers where they are without sacrificing transparency, controls, or speed.

Anchorage said the partnership demonstrates how DeFi lending protocols can expand beyond crypto-native users to meet institutional demand at scale by outsourcing collateral management and risk functions while focusing on capital formation and market design.