First GENIUS-Compliant Stablecoin? Not So Fast, Says USDC 🤔

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Amidst the bustling world of digital finance, where the air is thick with the scent of innovation and the occasional whiff of skepticism, Anchorage Digital, the lone federally chartered crypto bank in the United States, has announced a partnership with Ethena Labs. Together, they aim to introduce the USDtb stablecoin to the American market, wrapped in the warm embrace of the newly enacted GENIUS Act. 🎉

This grand endeavor seeks to transition USDtb from its cozy British Virgin Islands home, where it has been issued through the Pallas Fund (BVI) Ltd since December, to a more domestic setting via Anchorage Digital’s stablecoin platform. Currently, the token boasts a $1.45 billion supply on the Ethereum blockchain, backed primarily by the tokenized money market fund BUIDL, courtesy of BlackRock and Securitize. 🏦

But Is It Really the First?

Anchorage Digital’s bold claim of being the “first GENIUS Act-compliant stablecoin” has raised a few eyebrows. Circle, the issuer of USDC, has quietly noted that their stablecoin “sets a high benchmark for payment stablecoin standards codified in this landmark legislation” and has been operating in alignment with GENIUS Act requirements all along. 🙄

Signed into law on July 18, the GENIUS Act mandates that stablecoin issuers maintain at least a 1:1 reserve of United States currency, treasury bills, or other approved reserves. A simple requirement, one might think, but apparently, it’s a race to the finish line. 🏃‍♂️💨

Ethena Labs: A Tale of Controversy and Clarification

Ethena Labs, the partner in this grand venture, has not been without its share of drama. In October 2024, the Crypto Times reported that crypto sleuth Nomad accused Ethena Labs of misusing 180 million ENA tokens during a farming event. The allegation suggested that the team controlled about 25% of all staked ENA tokens, potentially diluting rewards for other users. Ethena Labs responded that the tokens met the participation criteria but sidestepped the question of user reward dilution like a cat avoiding water. 🐱💦

Adding to the intrigue, Ethena Labs faced a moment of confusion in February 2024 when an inaccurate press release claimed major investors, including PayPal, were participating in a funding round. The company later clarified this as an “honest mistake,” much to the relief of no one in particular. 🤷‍♂️

Shadows of Terra: The USDe Dilemma

Beyond USDtb, Ethena Labs’ USDe, an algorithmic stablecoin, has drawn uncomfortable comparisons to the ill-fated Terra-Luna ecosystem. USDe’s promise of high yields has raised concerns, reminiscent of the UST model that led to its spectacular collapse in 2022. 🌋💥

Ethena founder Guy Young dismisses these comparisons as a “weak, surface-level argument,” pointing out that “UST was backed by the LUNA token, which mooned up 100% and dumped 50% in a week,” whereas “Ethena’s USD is fully backed and fully collateralized.” A fair point, perhaps, but one that does little to quell the whispers of doubt. 🤫

USDe is a synthetic dollar backed by a mix of crypto assets, including Bitcoin, Ethereum, and Solana, along with corresponding short futures positions. Meanwhile, USDtb remains securely anchored in high short-duration treasury assets, including BlackRock’s BUIDL. 📊

For those interested, USDtb is currently tradeable on ByBit, Curve, and OpenOcean. Whether this marks the dawn of a new era in stablecoin compliance or just another chapter in the ongoing saga of crypto controversies, only time will tell. ⏳

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2025-07-28 15:14