Anchorage Digital, a federally chartered crypto custody bank in the US, announced it will recommend institutional clients sell stablecoins USDC, Agora USD (AUSD), and Usual USD (USD0) and convert holdings into Global Dollar (USDG). Anchorage cited its "Stablecoin Security Matrix" report as the basis, which evaluates stablecoins on regulatory oversight and reserve asset management.
Anchorage claims USDC, AUSD, and USD0 no longer meet its criteria for long-term durability, highlighting concerns about concentration risks in issuer structures. Head of Global Operations Rachel Anderika emphasized Anchorage’s commitment to stablecoins that align with transparency, independence, security, and anticipated regulatory expectations.
The decision arises amid rising stablecoin competition and recent US regulatory developments, including the GENIUS Act passed by the Senate to formalize stablecoin issuance rules. Anchorage rates USDC a 2/5 on regulatory and reserve management, criticizing Circle’s 15% cash reserve holdings and referencing USDC’s brief depeg in March 2023 after Silicon Valley Bank's collapse. This contrasts with stronger ratings from S&P and other firms.
The move sparked backlash. Nick Van Eck, AUSD issuer, accused Anchorage of misinformation and hiding its economic ties to USDG, issued by Paxos where Anchorage is a partner. Coinbase expert Viktor Bunin called the move a "poorly prepared smear campaign." Anchorage’s assessment has been questioned by other industry figures, noting AUSD’s regulated reserve manager and USDC’s compliance achievements.
Despite Anchorage’s stance, companies like BitGo and FalconX reaffirm support for USDC and AUSD stablecoins. Circle defended USDC’s strong regulatory compliance and robust liquidity, emphasizing its backing by fiat reserves and transparency.