According to @zachxbt, Circle has established a revenue-sharing agreement with the crypto exchange Bybit to drive adoption of its USDC stablecoin, similar to existing deals with Coinbase and Binance. Sources indicate these partnerships are a core strategy for Circle to compete with Tether (USDT) and new entrants like Global Dollar (USDG). This development comes as crypto custodian Anchorage Digital announced it is phasing out support for USDC and Agora's AUSD, citing internal risk assessments related to issuer concentration. However, this move has drawn sharp criticism from industry leaders, including Agora's Nick Van Eck and Coinbase's Viktor Bunin, who accuse Anchorage of a conflict of interest as it directs clients to USDG, a stablecoin in which Anchorage is a founding partner. In response to the delisting, other major firms like custodian BitGo and prime broker FalconX have publicly reaffirmed their continued support for USDC and AUSD, potentially limiting the market impact for traders. The USDCUSDT pair is currently trading at $0.9997, slightly below its peg, amidst this heightened competition.

According to @zachxbt, crypto custodian and federally chartered bank Anchorage Digital announced it will phase out support for major stablecoins including Circle's USDC, Agora's AUSD, and Usual USD's USD0. The firm cited its proprietary 'Stablecoin Safety Matrix,' which identified 'elevated concentration risks' with the issuers' structures, as stated by Anchorage's head of global operations, Rachel Anderika. This decision has ignited significant controversy and pushback from prominent industry figures. Nick Van Eck, whose firm Agora issues AUSD, accused Anchorage of misrepresenting facts and failing to disclose its commercial interest in a rival stablecoin, Global Dollar (USDG), in which Anchorage is a founding partner. Jan Van Eck, CEO of asset manager Van Eck, and Viktor Bunin of Coinbase also publicly questioned the validity of Anchorage's risk assessment. In response, a Circle spokesperson defended USDC's robust compliance and transparency. Other major players, including crypto custodians BitGo and prime broker FalconX, have publicly stated they will continue to support both USDC and AUSD, signaling a potential rift in institutional stablecoin preferences.