TLDR
- Tether invested $100 million in Anchorage Digital Bank, valuing the crypto bank at $4.2 billion
- The investment builds on an existing partnership where Anchorage issues Tether’s USAT stablecoin for the U.S. market
- Anchorage Digital holds a federal banking charter that allows it to issue stablecoins under the Genius Act
- Tether previously exited the U.S. market after paying a $41 million fine for misrepresenting its reserves
- Anchorage will allow long-serving employees to sell equity at the $4.2 billion valuation through a tender offer
Tether Holdings has invested $100 million in Anchorage Digital Bank. The deal values the federally chartered crypto bank at $4.2 billion.
The investment strengthens a partnership between the stablecoin issuer and the crypto lender. Anchorage Digital currently serves as the banking partner for Tether’s operations in the United States.
In January, Tether launched its USAT stablecoin through Anchorage Digital. This marks Tether’s return to the U.S. market after a previous exit.
Tether had withdrawn from the U.S. market following regulatory issues. The company paid a $41 million fine to settle claims about misrepresenting its reserves.
Anchorage Digital holds a national banking charter in the U.S. This license allows the bank to offer custody, staking, and settlement services to institutional clients.
The federal charter also permits Anchorage to issue stablecoins under the Genius Act. This law came into effect in July of last year.
Employee Equity Sale Announced
Anchorage Digital announced plans for its first tender offer. The company will allow long-serving employees to sell some of their equity.
The share sale will occur at the $4.2 billion valuation. Anchorage stated the focus is on employee liquidity rather than raising additional capital.
Tether operates USDT, the world’s largest stablecoin. The token has a market capitalization of $185 billion.
The company is headquartered and regulated in El Salvador. Tether traditionally focuses on offshore users and emerging markets with USDT.
Expanding U.S. Market Presence
The investment provides Tether with access to U.S. stablecoin infrastructure. This comes as the market moves toward regulated players following new legislation.
Paolo Ardoino, CEO of Tether, commented on the investment. He said the company exists to challenge the status quo and build global infrastructure.
Tether stated that Anchorage Digital plays a critical role in the integration of digital assets. The company views the bank as important for mainstream financial systems.
The USAT stablecoin was designed specifically for the U.S. market. It complies with local regulations through Anchorage’s banking infrastructure.
Anchorage provides services to institutional clients in the digital asset space. The bank’s federal charter sets it apart from other crypto service providers.
The $4.2 billion valuation reflects investor confidence in regulated crypto banking. Anchorage Digital has positioned itself as a compliant infrastructure provider in the sector.
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