From Yahoo Finance: 2025-06-27 16:54:00

Anchorage Digital, a crypto custodian and bank, will phase out USDC and other stablecoins in favor of USDG. The move follows a Stablecoin Safety Matrix ranking stablecoins based on regulatory oversight. Circle-issued USDC, AUSD, and USD0 were deemed unsuitable due to concentration risks. Stablecoins’ prices are tied to external assets, mainly the U.S. dollar.

The decision by Anchorage Digital to phase out certain stablecoins comes amid growing competition in the stablecoin market. The U.S. Senate passed the GENIUS Act, aiming to establish clear rules for the asset class and issuers. Reports by Citi and Standard Chartered project the stablecoin market to grow to trillions in the coming years.

Anchorage gave USDC a low score for regulatory oversight and reserve management. The report highlighted issues with Circle’s reserves and a temporary depegging incident in March 2023. Tether’s USDT received a higher rating due to regulation in El Salvador. S&P Ratings and Bluechip also provided assessments of USDC’s stability.

The decision by Anchorage to phase out certain stablecoins faced criticism from industry players. Nick Van Eck accused Anchorage of misrepresenting facts about AUSD and USDC. Viktor Bunin and Jan Van Eck also questioned the risk assessment. Circle defended its compliance record and reputation as an industry leader.

Support for Circle and Agora came from outside their camp. BitGo confirmed it will continue to support USDC. FalconX expressed readiness to support clients using AUSD and USDC. Despite the pushback, Anchorage’s decision to phase out certain stablecoins has sparked debate within the industry.

Read more: Anchorage to Phase Out USDC, Agora USD Citing Risks, Stirring Fierce Backlash