Crypto custodian and federal charter bank Anchorage Digital says it will begin to phase out and guide institutional clients to convert USDC
and other stable and stable competitors that match the global dollar (USDG) In a comprehensive move, it has attracted criticism from industry participants.
The company releasedStablecoin Security Matrix“This ranks stablecoins on Tuesday based on regulatory oversight and reserve asset management.
Circle’s USDC is the second largest Stablecoin, with a supply of $61 billion, and is popular among institutions and is considered no longer suitable under the Anchorage’s security framework. The other two smaller tokens, agora usd (AUSD) and the usual dollar (USD0)also planned to be removed. Stablecoins are cryptocurrencies whose prices are related to external assets and are mainly related to the US dollar.
Rachel Anderika, head of global operations at Anchorage statement Prove this decision justified. “Specifically, we identified higher concentration risks associated with issuer structure – we believe institutions should evaluate carefully.”
She added: “The anchor numbers focus on supporting stability that demonstrates strong transparency, independence, security and consistency with future regulatory expectations.”
Stablecoin Competition Heating
This move comes at a time when Stablecoin market competes with global banks, payment companies and cryptocurrency companies to promote their position in rapidly growing fields.
The U.S. Senate recently passed the Genius Act, which aims to create clear rules for asset classes and issuers, which could open the door to wider adoption. On Friday, White House Crypto Tsar David Sacks suggested the bill could become law immediately next month, awaiting pending decision on the House.
Report Cloth and Standard charter The report expects asset classes to grow from the current $250 billion to the next few years. Circle (CRCL)The company behind the USDC token has recently been public and soared in its valuation.
Anchorage provides USDC with 2 out of 5 points for regulatory oversight and preparatory management. The report said there was “no substantial prudent supervision” and the circle’s reserves were large (about 15%) held in cash in banks. It is worth noting that when partner bank Silicon Valley Bank went bankrupt, USDC Depegg made a temporary move in March 2023. Tether’s USDT is the world’s largest Stablecoin with a higher rating, while Anchorage points to El Salvador’s regulation.
The S&P Rating is rated USDC “Strong”, which is the second highest rating in the stability and stability assessment. BlueChip, a crypto-local Stablecoin rating company, Give Economic security rating of USDC A B+ grade.
Industry leaders push back
Anchorage’s decision was met with a fierce counterattack.
Nick van Eck defendant The anchoring facts about his stable facts failed to reveal his business interest in the global dollar. USDG is release Provided by Paxos and supported by companies that share revenues by reserve assets that support tokens. The anchorage is the founding partner of the consortium.
“If Anchorage just granted USDC and AUSD to a stablecoin that prioritizes their financial interests, I would understand it was a business decision,” he said in his X post. “However, it is unconfidence and strange to try to authorize AUSD and USDC as a ‘security issue’ while intentionally posting false information.”
“Never seen such obvious hits so badly,” explain Viktor Bunin, a protocol expert at digital asset exchange Coinbase. Common cases Co-launched USDC joined Circle in 2018 and shared revenue from reserve assets that support tokens.
Nick van Eck’s father, Jan Van Eck and CEO of Van Eck, an asset manager who manages AUSD assets, also questioned the risk assessment.
“If you need to laugh, check this ‘safe’ matrix before anchoring down. According to the matrix, Circle’s USDC says (The second most stable in the world) and Ausd (100% backed by Treasury bonds) There is a reservation problem,” he Posted On X. “Oh, by the way, the reserve manager in Australia is regulated by different regulators.”
Circle defended the company’s “long-term compliance record” and “reputation as an industry leader” in a statement sent to Coindesk.
“We comply with universal U.S. regulatory standards applicable to leading fintech and payment companies, and we are the first stable issuer to fully comply with the EU’s landmark encryption laws,” a circle spokesperson said. “USDC is backed by 100% of Fiat-denominated reserves and has strong primary liquidity through a good network of banks, which represents the highest level of transparency, security and operational resilience in our industry.”
Outside the two Stablecoins camps, support from Circle and Agora was supported.
“For the sake of record, BITGO has not reduced USDC support,” explain Chen Fang, Chief Revenue Officer, Crypto Custodian Bitgo.
“Agora and Circle are our long-term partners, and our customers rely on secure, transparent railroad tracks for settlement,” explain Joshua Lim, co-director of marketing at Crypto Prime Broker Falconx, added that his company is “ready to use AUSD and USDC to support customers.”
