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Anchorage Digital provides non-U.S. banks with a stablecoin alternative for correspondent banking services.
Crypto bank Anchorage Digital is introducing U.S.-compliant stablecoin infrastructure for international banks, facilitating quicker asset transfers across borders.
CEO Nathan McCauley of Anchorage Digital is welcoming international bank clients to new stablecoin offerings. (CoinDesk)
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What to know:
- Anchorage Digital is setting up stablecoin services that international banks can utilize to access U.S.-regulated infrastructure.
- The offerings, which include issuance, custody, and blockchain-native settlement, aim to provide a quicker alternative to traditional correspondent banking arrangements.
Anchorage Digital, recognized as the first crypto company to obtain a U.S. banking charter, aims to replace correspondent banking dependencies for international banks with a new service that provides U.S.-regulated stablecoin infrastructure for non-U.S. entities.
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The bank is rolling out its so-called “Stablecoin Solutions” to facilitate seamless, cross-border transactions of dollar-linked assets, integrating “minting and redemption, custody, fiat treasury management, and settlement” into a single service, according to a statement released on Thursday.
"Stablecoins are becoming essential financial infrastructure," stated Nathan McCauley, co-founder and CEO of Anchorage Digital, in a statement. "Stablecoin Solutions provides banks with a federally regulated method to transfer dollars worldwide using blockchain systems, without compromising custody, compliance, or operational oversight."
With the introduction of a new law regulating stablecoin issuers under last year’s Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, Anchorage Digital — already under federal regulation by the Office of the Comptroller of the Currency — is poised to launch these stablecoin services. Although the firm is equipped to manage any type of stablecoin, a market currently led by Tether’s $USDT and Circle’s $USDC, it has indicated that institutions can natively mint and redeem tokens “issued by Anchorage Digital Bank, including Tether’s USA₮, Ethena Labs’ USDtb, OSL’s USDGO, and forthcoming issuances such as Western Union’s USDPT.”
Correspondent banking enables foreign banks to engage another institution to manage their cross-border operations, including wire transfers, currency conversion, accepting foreign deposits, and acting as a third-party representative. However, this process can be costly and slow. Anchorage Digital proposes that it can leverage stablecoin infrastructure to reduce settlement times and streamline the existing system’s complexities.
The GENIUS Act that will regulate this sector has not yet been enacted by the relevant federal agencies responsible for oversight, such as the OCC and other banking regulators. These agencies have started to propose some future regulatory frameworks.
Certain aspects regarding stablecoin yield are currently being revisited in the ongoing Senate discussions concerning the Digital Asset Market Clarity Act.
Read More: Tether invests $100 million in U.S. crypto bank Anchorage, valued at $4.2 billion
