Why Anchorage Digital’s Move Signals Challenges for Stellar and Circle

Anchorage Digital’s Stablecoin Shift: A Blow to Stellar

Anchorage Digital, the United States’ first federally chartered crypto bank and a leading custodian, has made waves by announcing plans to phase out support for Circle’s USDC, a major stablecoin heavily integrated with the Stellar (XLM) blockchain. Priced at $0.13 (June 2025), Stellar is known for enabling seamless, low-cost cross-border payments and fiat on/off-ramping, primarily through USDC. Anchorage’s decision to replace USDC with its own USD Global (USDG), a gold-backed stablecoin, raises concerns for Stellar’s ecosystem and its investors.

Anchorage’s Stablecoin Safety Matrix cites USDC’s “elevated concentration risks” and poor regulatory oversight, giving it a low score of 2/5. Backed by heavyweights like Visa, Goldman Sachs, and Andreessen Horowitz (a16z), Anchorage’s move aligns with a broader trend of Ripple-affiliated firms encroaching on Stellar’s small-to-mid-size payment niche. This shift, detailed in the premium section, could signal a pivotal moment for Stellar and stablecoin investors.

Investor Tip: Prioritize cryptos with strong regulatory alignment and diversified partnerships, but only invest what you can afford to lose.

Disclaimer: Cryptocurrency markets are volatile. This is not financial advice. Consult a licensed advisor.

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