The post Crypto Custodian Anchorage to Phase Out USDC, Stirring Backlash appeared on BitcoinEthereumNews.com.

Anchorage Digital, a crypto custodian and federally chartered bank, said it will start phasing out and direct institutional clients to convert USDC and other stablecoins into rival token Global Dollar (USDG) in a sweeping move that drew criticism from industry players. The firm released a “Stablecoin Safety Matrix” that ranks stablecoins based on regulatory oversight and reserve asset management on Tuesday. Circle-issued USDC, which is the second-largest stablecoin with a $61 billion supply and is popular among institutions, was deemed no longer suitable under Anchorage’s security framework. Two other, smaller tokens, Agora USD (AUSD) and Usual USD (USD0), were also slated for removal. Stablecoins are cryptocurrencies with their prices tied to an external asset, predominantly to the U.S. dollar. “Following our Stablecoin Safety Matrix, USDC, AUSD, and USD0 no longer satisfy Anchorage Digital’s internal criteria for long-term resilience,” Rachel Anderika, head of global operations at Anchorage, said in a statement justifying the decision. “Specifically, we identified elevated concentration risks associated with their issuer structures — something we believe institutions should carefully evaluate.” “Anchorage Digital is focused on supporting stablecoins that demonstrate strong transparency, independence, security, and alignment with future regulatory expectations,” she added. Stablecoin race heats up The move came at a time when competition in the stablecoin market is heating up with global banks, payments firms and crypto companies jockeying for position in the rapidly-growing sector. The U.S. Senate recently passed the GENIUS Act that aims to enact clear rules for the asset class and issuers, which could open the gates for broader adoption. On Friday, White House crypto czar David Sacks suggested that the bill may become law as soon as next month, pending passage in the House of Representatives. Reports by Citi and Standard Chartered reports projected the asset class to grow from the current $250 billion…

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Filed under: News - @ June 28, 2025 5:23 am