U.S. Bank to Custody Anchorage Digital’s Payment Stablecoin Reserves

U.S. Bank will serve as the custodian for reserves backing Anchorage Digital Bank’s payment stablecoins, the companies said in a Wednesday (Oct. 8) press release.

The bank is one of the nation’s largest global custodians and has clients that include financial institutions, corporations, insurance companies, government entities, foundations and other institutional asset owners, according to the release.

“As the rapidly growing digital asset segment and regulatory environment continue to evolve, the strength and stability of U.S. Bank, along with its custody solutions and expertise, offers an extra layer of assurance that may help accelerate issuance of these products,” Stephen Philipson, vice chair, U.S. Bank Wealth, Corporate, Commercial and Institutional Banking, said in the release.

Anchorage Digital Bank is a crypto-native bank holding a federal charter, the release said. Following the passage of the GENIUS Act, Anchorage Digital Bank launched its stablecoin issuance platform with stablecoins that are fully compliant with that law, which requires that they are backed one-to-one by certain high-quality liquid assets and supported by Bank Secrecy Act and anti-money laundering programs, per the release.

Nathan McCauley, CEO and co-founder of Anchorage Digital, said in the release that the GENIUS Act enabled payment stablecoin to “scale responsibly under U.S. oversight” ad that the company aims to issue payment stablecoins that meet regulatory standards and provide utility for institutions.

“Partnering with U.S. Bank reflects the growing alignment between digital finance and the traditional financial system — and it underscores the momentum behind bridging dollar-backed payment stablecoins into the mainstream,” McCauley said.

PYMNTS reported in August that when it comes to digital assets, custody means not just keeping private keys safe, but also managing reserves, enabling settlement and servicing tokenized assets.

The GENIUS Act, which establishes clearer rules for issuing and backing stablecoins, could result in a flight to quality as issuers eye Federal Deposit Insurance Corp.-backed institutions, creating an opportunity for the biggest banking players, the report said.

In July, blockchain company Ripple chose BNY for the primary custody of its stablecoin reserves, with BNY saying in a press release that the two companies “are committed to paving the way for digital asset adoption at institutional scale.”

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