U.S. Bank to custody reserves backing payment stablecoins from Anchorage Digital

U.S. Bank (NYSE:USB) has been tapped to serve as the custodian for reserves backing crypto-native lender Anchorage Digital Bank's payment-optimized stablecoins, it said on Wednesday.

With the recent passage of the stablecoin-focused GENIUS Act offering increased regulatory clarity, some banks have been moving toward crypto custody. The legislation requires high-quality, liquid reserves like Treasury securities and allows banks to safeguard them.

“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,” said Stephen Philipson, vice chair, U.S. Bank Wealth, Corporate, Commercial and Institutional Banking.

Payment stablecoins from Anchorage Digital Bank, which has received a charter from the U.S. Office of the Comptroller of the Currency, are fully compliant with the GENIUS Act.

Meanwhile, BNY (BK) already custodies Circle Internet Group's (CRCL) USDC (USDC-USD) reserves, comprising cash and short-dated Treasuries. The bank is also the primary custodian for Ripple's RLUSD (RLUSD-USD) reserves. And Citigroup (C) is among the big banks actively exploring custody for stablecoin reserves.

As of June 30, U.S. Bank Wealth, Corporate, Commercial and Institutional Banking had more than $11.7T in assets under custody and administration.