Digital Currency Company Anchorage partners with Ethena Labs to ensure compliance with GENIUS standards for stablecoin development
In a significant move for the digital asset industry, Anchorage Digital, the first and only federally chartered digital asset bank in the United States, has partnered with Ethena Labs, a leading digital asset infrastructure and stablecoin issuer, to launch a stablecoin fully compliant with the GENIUS Act. The stablecoin, called USDtb, was previously only available offshore but will now be issued in the U.S. through Anchorage Digital’s platform.
Key Features of the Partnership
The partnership targets institutional clients, offering compliant, programmable digital dollars that integrate directly with the U.S. financial system. USDtb is structured to meet the stringent requirements of the GENIUS Act, including transparency, reserve backing, real-time reporting, mandatory audits, and oversight by the Federal Reserve.
Ethena’s technical expertise in algorithmic stablecoins is combined with Anchorage’s banking infrastructure, resulting in a stablecoin that blends traditional reserves with algorithmic adjustments for price stability. As of launch, USDtb has a supply of approximately $1.5 billion on the Ethereum blockchain, now accessible within the U.S. regulatory framework.
Implications of the Partnership
This partnership represents a significant milestone in the crypto industry’s efforts to align with U.S. financial regulations, setting a precedent for future stablecoin issuances. By adhering to the GENIUS Act’s safeguards, the collaboration aims to reduce systemic risks associated with stablecoins, addressing concerns highlighted by previous crypto failures.
The availability of a compliant, programmable stablecoin is expected to accelerate institutional adoption of digital assets, as banks and financial institutions now have a clear, regulated pathway to hold and transact in USDtb. Anchorage Digital positions itself as a leading U.S. stablecoin issuer for institutions, while Ethena expands its reach into the regulated U.S. market.
This development signals a broader industry shift toward transparency, reserve integrity, and regulatory compliance, likely influencing future stablecoin projects and related legislation. The partnership may introduce new competitive dynamics between Anchorage Digital and Paxos, both active in stablecoin issuance. Anchorage Digital’s involvement may help USDtb’s expansion in the face of previous regulatory challenges.
Summary
The Anchorage Digital–Ethena Labs partnership marks a watershed moment for the U.S. digital asset ecosystem, bridging regulatory requirements with cutting-edge stablecoin technology and paving the way for broader institutional participation in crypto finance.
| Aspect | Details | |-----------------------|-------------------------------------------------------------------------| | Partners | Anchorage Digital (federally chartered crypto bank) & Ethena Labs | | Stablecoin | USDtb (previously offshore, now U.S.-issued) | | Compliance | Fully GENIUS Act compliant (transparency, reserve, audits, oversight) | | Target Market | Institutional investors and financial institutions | | Supply | ~$1.5 billion (Ethereum blockchain) | | Model | Hybrid reserves + algorithmic adjustments | | Implications | Regulatory precedent, risk reduction, institutional adoption, market growth |
[1] Anchorage Digital Press Release, "Anchorage Digital Partners with Ethena Labs to Launch Genius Act Compliant Stablecoin USDtb in the U.S.", 2023. [2] Ethena Labs Press Release, "Ethena Labs and Anchorage Digital Partner to Bring Compliant Stablecoin USDtb to the U.S.", 2023. [3] CoinDesk, "Anchorage Digital and Ethena Labs Partner to Launch Compliant Stablecoin USDtb in the U.S.", 2023. [4] The Block, "Anchorage Digital and Ethena Labs Partner to Launch Compliant Stablecoin USDtb in the U.S.", 2023.
- The collaboration between Anchorage Digital and Ethena Labs, in launching the stablecoin USDtb, has set a precedent for future stablecoin issuances within the US, adhering to the GENIUS Act's regulations and fostering transparency, reserve integrity, and compliance in the digital asset industry.
- The stablecoin USDtb, offered through Anchorage Digital's platform, integrates traditional reserves with algorithmic adjustments for price stability, ensuring capital safety for institutional clients while abiding by the stringent requirements outlined in the GENIUS Act.
- The partnership between these fintech companies not only strengthens their positions in the stablecoin sector but also creates competition with other players in the industry such as Paxos, potentially influencing the development of future stablecoin projects and related legislation.
- With an initial supply of approximately $1.5 billion, the availability of a regulated, programmable stablecoin USDtb is anticipated to accelerate institutional adoption of digital assets and increase capital inflow into the US digital asset industry, impacting the broader finance and fintech landscapes.
