Anchorage Delists USDC, AUSD, USD0 Over Safety Concerns

Anchorage Digital, a federally chartered crypto bank, has recently faced criticism for its decision to delist several stablecoins, including USDC, Agora USD (AUSD), and Usual USD (USD0). The firm released a “Stablecoin Safety Matrix” that evaluates digital dollar tokens based on regulatory oversight and reserve quality. According to the matrix, USDC, AUSD, and USD0 failed to meet Anchorage’s internal criteria for long-term resilience and will be phased out.

Anchorage has urged its institutional clients to switch to Global Dollar (USDG), a rival stablecoin issued by Paxos and supported by a consortium in which Anchorage itself is a founding member. Rachel Anderika, head of global operations at Anchorage, justified the decision by stating that the firm identified elevated concentration risks associated with the issuer structures of the delisted stablecoins.

Anchorage’s move comes at a time when the stablecoin market is experiencing significant activity. Financial giants and crypto firms are competing for dominance in the market, which analysts predict could grow to the trillions. Despite Anchorage’s decision, other stablecoin evaluators remain favorable toward USDC. S&P Global recently gave USDC a “strong” stability rating, and the crypto-native ratings firm Bluechip gave it a B+ in economic safety.

Circle, the issuer of USDC, has pushed back on Anchorage’s claims, defending its “long-standing compliance record” and full backing by fiat reserves. The company emphasized its commitment to regulatory compliance and transparency.

Anchorage’s decision has drawn sharp criticism from key players in the crypto space. Nick Van Eck, founder of Agora and the issuer of AUSD, accused the firm of spreading misinformation and failing to disclose its financial interest in USDG. He suggested that Anchorage’s move was motivated by profit rather than safety concerns. Viktor Bunin of Coinbase, which co-launched USDC, also criticized Anchorage’s report, describing it as a poorly executed hit piece. Jan Van Eck, CEO of asset manager Van Eck and father to Nick, mocked the company’s safety matrix, predicting that the firm might soon take it down.

Circle reiterated that regulated institutions back USDC and maintain robust liquidity and transparency. Other custodians also supported USDC and AUSD. BitGo’s chief revenue officer, Chen Fang, stated that the company was not ceasing support for USDC. Agora and Circle, longtime partners in AUSD, have assured clients that they can accommodate the needs of those trading AUSD and USDC.

While Anchorage moves forward with its stablecoin revamp, it may face increased scrutiny of its motives and transparency. The stablecoin wars are not over — and trust, it seems, is the true currency at play.