Solana Latest Updates: After Custody Turmoil, DeFi Collaborates with Banks to Offer a Safe Staking Alternative

Anchorage Digital, recognized as the first crypto bank in the U.S. with a federal charter, has begun offering institutional custody services for Bybit’s staked

token (bbSOL). This move is seen as a notable advancement in connecting decentralized finance (DeFi) with established banking protocols, according to . Through this collaboration, bbSOL is now positioned as a liquid staking token (LST) suitable for institutions, giving regulated organizations a secure way to access Solana staking returns while retaining liquidity, as reported by . Bybit, which ranks as the second-largest crypto exchange globally by trading volume, stated that this integration supports its goal to deliver compliant DeFi products to institutional clients, according to .

This development comes at a time when crypto custody practices are under increased regulatory scrutiny, especially after the failures of Nevada-based custodians like Fortress Trust and Prime Trust. Fortress Trust was closed by regulators in October 2025 due to insolvency and poor management, resulting in client losses exceeding $12 million, according to

. These incidents have highlighted the inherent risks of centralized custody, where users’ private keys are managed by third parties, exposing assets to both operational and insolvency threats, as noted by . Experts point out that more institutions are now seeking custodians with strong regulatory oversight, such as federally chartered banks or New York-regulated trusts, which require asset segregation and thorough audits.

Bybit’s bbSOL enables users to stake Solana (SOL) and earn tokenized rewards while keeping their assets liquid, as reported by Coinfomania. Despite this, institutional uptake has been limited by concerns over custody and regulatory clarity. Anchorage Digital’s participation helps resolve these issues by offering security at the level of a bank, along with insurance and compliance monitoring, Blockonomi reported. The custodian’s platform ensures bbSOL assets are protected under U.S. federal banking regulations, lowering counterparty risk for institutional investors and businesses, according to WalletInvestor. Emily Bao, Bybit’s Head of Spot, highlighted that the partnership delivers a “transparent and compliant gateway” to Solana’s DeFi landscape.

This partnership is part of a wider industry movement toward regulated custody options. Following the Fortress Trust collapse, exchanges and fintech firms are increasingly adopting frameworks that require asset segregation, auditability, and sub-custody permissions, as analyzed by CryptoRank. Anchorage Digital’s support for bbSOL fits this trend, allowing institutions to earn on-chain yields without sacrificing security. Nathan McCauley, Anchorage Digital’s CEO, described the integration as a “significant advancement” for institutional DeFi participation.

At the same time, institutional interest in the Solana ecosystem is growing. The launch of staking-enabled ETFs, such as Grayscale’s GSOL, has further established digital assets as viable components of diversified investment portfolios. With Anchorage now safeguarding bbSOL, Bybit’s offering could help drive this trend forward, according to Coinfomania.

As the crypto sector continues to face regulatory and operational hurdles, collaborations like this one underscore the increasing overlap between DeFi and traditional financial systems. With custodians such as Anchorage Digital at the forefront, the route to widespread institutional adoption is becoming more defined, though ongoing focus on security, transparency, and regulatory compliance remains essential.