Anchorage Digital It explores a stablecoin issuance model designed to provide institutional stablecoin issuers with better liquidity, capital efficiency, and security.
The non-cash reserves model will rely on timely liquidity to meet redemption demand, thereby improving treasury management and return opportunities, the company said in a Tuesday (May 5) press release emailed to PYMNTS.
Instead of fixed cash reserves, this model would hold reserves Solana In yield-bearing, low-risk and tokenized instruments that can generate liquidity on demand, according to the statement.
Anchorage Digital will issue and manage stablecoins for this model on behalf of institutional partners, with a third party providing the liquidity infrastructure.
The company works with JPMorgan Asset Management To explore a potential token solution that could be used by a third party.
“Stablecoins have become essential financial infrastructure, but the underlying financial system needs to evolve to meet the needs of digital assets,” said Co-Founder and CEO of Anchorage Digital. Nathan Macauley he said in the release. “By leveraging high-performance networks like Solana, and exploring a relationship with JPMorgan Asset Management, we are giving our stablecoin partners and their clients a way to operate with greater efficiency, stronger liquidity and a more robust reserve model, without adding complexity for end users.”
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Solana Foundation Head of Corporate Growth Nick Dukov Solana’s infrastructure makes capital movement faster and more efficient and brings financial workflows on-chain, he said in the statement.
“Expanding proven financial mechanisms like intraday liquidity into an always-on environment is a natural next step for institutional adoption,” Dukov said.
Anchorage Digital aims to become Infrastructure He wants all banks to become crypto banks, and he wants all banks to become crypto banks, McCauley told PYMNTS CEO Karen Webster in an interview published Thursday (April 30).
Today, the company is the regulated issuer of the US stablecoin Tether, as well as the Ethena and Western Union coins. It is also the custody barrier behind BlackRock’s BUIDL. In each case, Anchorage Digital acts as a regulated counterparty for institutions that don’t want to become a cryptocurrency bank themselves.
“Whether it’s stablecoins, whether it’s custody and trading on the back end, or whether it’s building their business on top of ours, we’re here to be the enabling infrastructure bank for this industry,” McCauley said.
