One of the Largest Cryptocurrency Banks in the U.S. Has Asked Its Customers to Liquidate Three Cryptocurrencies, the Debate is Growing!

Anchorage Digital, a bank authorized at the federal level that provides Crypto asset custody services, announced that it would advise its institutional clients to divest from stablecoins such as USDC, Agora USD (AUSD), and Usual USD (USD0) and instead transition to the use of Global Dollar (USDG).

This decision has brought about significant debates in the crypto sector.

Anchorage evaluated stablecoins in its "Stablecoin Security Matrix" report, prepared to support this decision, based on criteria such as regulatory oversight and reserve asset management.

Rachel Anderika, Head of Operations at Anchorage Global, explained this decision by stating, "USDC, AUSD, and USD0 no longer meet Anchorage Digital's long-term resilience criteria." Anderika mentioned that there is a concentration risk in the issuance structures behind these assets and that this should be taken into account by institutional investors.

Anderika stated that from now on, Anchorage will only support stablecoins that are "in line with transparency, independence, security, and future regulatory expectations."

The decision coincided with a period of rapidly increasing competition in the stablecoin market. The recently passed GENIUS Act in the U.S. Senate aims to establish clear rules for stablecoin issuers. White House crypto advisor David Sacks mentioned that the bill could become law by passing through the House of Representatives in July.

Anchorage gave USDC a score of 2 out of 5 in terms of regulatory oversight and reserve management. The report stated that Circle holds approximately 15% of its reserves in cash at banks, which poses a risk. It is worth remembering that in March 2023, following the collapse of Silicon Valley Bank, USDC briefly fell below 1 dollar.

In contrast, S&P Ratings gave USDC a "strong" rating, while the crypto-focused Bluechip firm rated USDC at B+.

Anchorage's decision has received backlash from important figures in the industry. The issuer of AUSD, Nick Van Eck, accused Anchorage of "spreading misinformation" and hiding its commercial interests in Global Dollar (USDG). USDG is issued by Paxos and supported by a consortium in which Anchorage is also a partner.

Nick Van Eck said, "If this was just a business decision, I could understand. However, their attempts to defame USDC and AUSD with false information are unserious and strange."

Coinbase protocol expert Viktor Bunin described the decision as a "poorly prepared smear campaign." Coinbase launched USDC in 2018 in collaboration with Circle.

*It is not investment advice.

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