Expanding its crypto custody portfolio, BlackRock now incorporates Anchorage Digital.
Anchorage Digital: The Leading Federally Chartered Digital Asset Bank Faces Competition
Anchorage Digital, the only federally chartered digital asset bank in the United States, has been making waves in the crypto industry. The bank, which received its charter at the end of the previous Trump administration, has already established partnerships with institutional giants like BlackRock. However, as the crypto market continues to grow, so does the competition.
Robert Mitchnick, Head of Digital Assets at BlackRock, has praised Anchorage Digital for meeting the highest standards of institutional quality. The bank was already serving as the custodian for BlackRock's BUIDL tokenized money market fund, and its relationship has recently expanded to provide custody services for some of the cryptocurrency that backs BlackRock's crypto ETFs.
However, Anchorage Digital is not alone in the crypto custody services market. Direct competitors include Coinbase Custody, BitGo, Fidelity Digital Assets, and Gemini Trust Company, all operating under different regulatory frameworks in the U.S. These competitors compete on custody security, compliance, and integration with traditional finance.
In addition to these established players, new competitors are emerging. Meta, Amazon, and PayPal, major tech and payment companies, are potential new entrants into regulated stablecoin and digital asset custody services. These companies could disrupt the market dynamics with their vast infrastructure and regulatory leverage.
Anchorage Digital is also venturing into stablecoin issuance. In collaboration with Ethena Labs, the bank is launching USDtb, a GENIUS Act-compliant stablecoin fully backed by audited cash and Treasury assets. This move places Anchorage in direct competition with established stablecoin issuers like Circle (USDC) and Tether (USDT), who are positioning themselves under the evolving regulatory framework.
The competitive landscape for Anchorage Digital is complex, with both established crypto custodians and emerging stablecoin issuers from traditional finance and big tech vying for a piece of the market. The 2025 GENIUS Act, which creates a clearer regulatory path for federally chartered banks and other compliant entities to issue stablecoins, is expected to drive further competition.
In conclusion, Anchorage Digital's expected competitors within the year include crypto-native custodians like Coinbase Custody, BitGo, Fidelity Digital Assets, and Gemini Trust Company. Additionally, stablecoin issuers such as Circle, Tether, and Anchorage itself via USDtb are expected to compete. Lastly, potential big tech entrants like Meta, Amazon, and PayPal, seeking to leverage their infrastructure and regulatory leverage to issue stablecoins and custody services, represent significant potential new entrants that could disrupt the market dynamics.
Anchorage Digital faces competition not only from established crypto custodians like Coinbase Custody, BitGo, Fidelity Digital Assets, and Gemini Trust Company, but also from stablecoin issuers such as Circle and Tether. Furthermore, potential big tech entrants like Meta, Amazon, and PayPal, with their vast infrastructure and regulatory leverage, could disrupt the market dynamics by entering the regulated stablecoin and digital asset custody services. In the race for investments, Anchorage Digital's strategic partnerships and innovative ventures, such as the launch of USDtb, a GENIUS Act-compliant stablecoin backed by audited cash and Treasury assets, offer valuable assets and insights for capital allocation in the evolving digital asset finance landscape.
