Ethena and Anchorage Digital Team Up for GENIUS-Compliant Stablecoin

By: Eva Baxter

In a ground-breaking move, Ethena Labs has joined forces with Anchorage Digital to introduce a fully regulated version of its USDtb stablecoin in the United States. This initiative aligns with the newly enacted GENIUS Act, offering a significant development in the regulation of stablecoins within the US. The GENIUS Act establishes a federal regulatory framework for such digital assets, placing them under the oversight of the Federal Reserve. This legislation demands strict conditions on reserve asset holdings and sets compliance requirements for all issuers operating domestically, marking a new era in US cryptocurrency regulations.

The partnership represents a major milestone for Ethena Labs as it moves USDtb’s issuance into a domestically regulated environment. Anchorage Digital's unique position as the only federally chartered crypto institution in the nation provides a platform for USDtb’s issuance. By leveraging Anchorage's stablecoin platform, Ethena gains a significant advantage in the US market, offering heightened investor confidence through the regulated status of the issuers. Anchorage CEO Nathan McCauley highlighted the importance of these regulations, noting that the GENIUS Act enhances the ability of federally regulated institutions to participate actively in the stablecoin ecosystem.

USDtb has garnered considerable interest since its initial launch, particularly due to its backing by BlackRock’s tokenized BUIDL fund, which boasts over $2.4 billion in assets. The strong demand for USDtb prompted Ethena Labs to ensure its compliance with the GENIUS Act, allowing the digital asset to expand its utility across various platforms. The collaboration with Anchorage not only strengthens Ethena’s market position but also underscores the crucial role of regulated financial infrastructure in the evolving financial landscape. Ethena CEO Guy Young highlighted the transformative impact of GENIUS compliance in empowering partners and expanding the currency’s reach.

With its boots firmly placed on US soil, Ethena’s strategic pivot to a compliant GENIUS framework aims to reassure investors and broaden usage across emerging financial products. This step forwards into a fully regulated stablecoin market exemplifies the maturing nature of digital finance innovations and reflects a broader market trend towards comprehensive regulatory compliance.