Anchorage Discontinues USDC, AUSD, USD0 Due to Risks

Anchorage Digital has announced the discontinuation of support for USDC, Agora USD, and USD0 stablecoins, citing issuer-related risks in its safety criteria.

Anchorage Digital, a recognized crypto bank, has decided to phase out USDC, Agora USD, and USD0, citing concerns over issuer structures. The decision has led to criticisms from industry executives like Nick van Eck of Agora who claims biased motives, suggesting a potential competitive advantage for issuer Paxos in the aftermath.

“Following our Stablecoin Safety Matrix, USDC, AUSD, and USD0 no longer satisfy Anchorage Digital’s internal criteria for long-term resilience. Specifically, we identified elevated concentration risks associated with their issuer structures—something we believe institutions should carefully evaluate,” said Rachel Anderika, Head of Global Operations, Anchorage Digital.

The removal of these stablecoins may disrupt existing liquidity pools and impact how institutions manage digital assets. With businesses such as Agora voicing concerns, there is heightened scrutiny around Anchorage’s motives, amid regulatory pressures and compliance requirements. The crypto community is observing possible liquidity shifts following Anchorage’s action, although no major reductions in Total Value Locked have been reported yet.

Stablecoin delistings like this have historically led to increased interest in more regulated assets. Anchorage’s adherence to its “Stablecoin Safety Matrix” reflects a broader trend toward heightened assessment of crypto assets and issuer risks. As regulatory landscapes change, decisions like Anchorage’s could signify future norms. Moving forward, close attention will be paid to any stablecoin reallocations and their ripple effects on the market.