Anchorage Launches Stablecoin Alternative to Correspondent Banking

Anchorage Digital has introduced a new service that enables non-U.S. banks to settle cross-border transactions using regulated stablecoins instead of traditional correspondent banking networks.

The initiative targets long-standing inefficiencies tied to the global “de-risking” trend, where major U.S. banks have severed relationships with smaller foreign institutions, limiting their access to U.S. dollar clearing.

A Stablecoin-Based Settlement Layer

Under the new model, participating banks can use stablecoins such as USDC and PYUSD as a settlement rail for international transfers. Rather than routing payments through multiple intermediary correspondent banks, a process that can take several business days and involve layered fees, transactions can settle atomically through Anchorage’s institutional infrastructure.

Anchorage provides regulated on- and off-ramps, ensuring the stablecoins are backed 1:1 by high-quality U.S. dollar reserves. The system also integrates compliance tools, including Know Your Customer (KYC) and Anti-Money Laundering (AML) monitoring, designed to meet U.S. regulatory standards for foreign financial institutions.

This structure effectively creates a digital-native alternative to maintaining a traditional dollar correspondent account, while preserving oversight and regulatory safeguards.

Addressing the “De-Risking” Problem

For years, banks across emerging markets, particularly in the Caribbean, Africa, and parts of Asia, have faced restricted access to the U.S. financial system after larger correspondent banks exited those relationships. The result has been slower settlements, higher costs, and in some cases reduced participation in global trade flows.

Anchorage Co-founder and CEO Nathan McCauley described the model as a way to “restore the connective tissue of global commerce,” positioning stablecoins as a programmable, compliant stand-in for dollar accounts.

Compared with traditional correspondent banking, the differences are structural. Settlement shifts from a 2–5 business day window to near-instant execution available 24/7. Transaction tracking becomes fully transparent on-chain, reducing the opacity that often occurs while funds move between intermediaries. Counterparty exposure consolidates around a single regulated custodian rather than multiple correspondent institutions. Fee structures are also simplified, replacing layered deductions with more predictable transaction costs.

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Strategic and Market Implications

The launch follows a pilot program in late 2025 involving mid-sized banks in the UAE and Singapore. Analysts view the initiative as a direct competitive response to legacy cross-border systems such as SWIFT, particularly in settlement rather than messaging.

As a federally chartered U.S. crypto bank, Anchorage operates within a regulated framework that may provide comfort to institutions wary of purely crypto-native infrastructure. The model bridges traditional banking and blockchain settlement, combining stablecoin liquidity with institutional compliance standards.

If adoption expands beyond pilot participants, the service could mark a structural shift in how smaller international banks access U.S. dollar liquidity, not by rebuilding correspondent networks, but by bypassing them altogether.

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