Anchorage Digital to Phase Out USDC and Agora USD Over Risks
Anchorage Digital, a crypto custodian and federally chartered bank, plans to phase out support for USDC and other stablecoins, directing institutional clients to convert to the Global Dollar (USDG). This decision has faced criticism from industry participants.
Key points include:
- Anchorage published a Stablecoin Safety Matrix rating stablecoins based on regulatory oversight and reserve management.
- USDC, Agora USD (AUSD), and Usual USD (USD0) were deemed unsuitable under Anchorage's criteria due to elevated concentration risks.
- Circle's USDC has a supply of $61 billion and was rated 2 out of 5 by Anchorage for regulatory oversight.
- S&P Ratings classified USDC as "strong," while Bluechip gave it a B+ rating.
Market Context
The stablecoin market is becoming more competitive, with the U.S. Senate passing the GENIUS Act aimed at establishing clear rules for stablecoins. Reports project the stablecoin market could grow from $250 billion to trillions in the coming years.
Industry Response
Critics argue that Anchorage’s move prioritizes its economic interests in USDG. Nick Van Eck accused Anchorage of misrepresentation, while others like Viktor Bunin called the safety matrix poorly executed.
Circle defended its compliance record and operational transparency. Supporters of Circle and AUSD reaffirmed their commitment to these stablecoins despite Anchorage's decision.