Report Date: October 15, 2025 Source: AIXBT MCP Top Projects
USDtb became the first federally-regulated stablecoin under the GENIUS Act, transitioning to Anchorage Digital.
USDtb represents a watershed moment in crypto regulation, having achieved the distinction of becoming the first federally-regulated stablecoin under the recently enacted GENIUS Act. This historic transition, completed on October 13, 2025, marks a significant evolution from an offshore digital asset to a fully compliant U.S.-regulated stablecoin, fundamentally reshaping its operational framework and market positioning.
USDtb is a stablecoin product created by Ethena Labs, the same team behind USDe, designed to maintain a stable peg to the U.S. dollar. Prior to its regulatory transition, USDtb operated as an offshore stablecoin with a market capitalization of approximately $1.5 billion. The project's strategic decision to pursue GENIUS Act compliance demonstrates a sophisticated understanding of the evolving regulatory landscape and positions it at the forefront of institutional-grade digital assets.
The transition to federal regulation required significant structural changes. The smart contract for USDtb was transferred to Anchorage Digital, the first federally chartered crypto bank in the United States, which now assumes full control over the minting and redemption processes. This transfer involved moving the admin role for the smart contract to keys held by Anchorage Digital Bank and upgrading the smart contract to align with new regulatory parameters.
This move brings the formerly offshore stablecoin into the U.S. regulatory landscape under a framework that provides unprecedented clarity and institutional legitimacy. The partnership leverages Anchorage Digital's newly developed stablecoin issuance platform, designed as a turnkey solution for institutions seeking to launch regulated, U.S. dollar-backed digital assets.
The GENIUS Act establishes three critical requirements that USDtb must now satisfy. First, stablecoin issuers are limited to insured depository institutions such as banks, credit unions, subsidiaries of banks, and nonbank financial institutions that receive Federal Reserve approval. Second, issuers must maintain 1:1 reserves for any stablecoins issued, with these reserves held in physical currency, U.S. treasury bills, repurchase agreements, and other low-risk assets approved by regulators. Third, all issuers must comply with the Bank Secrecy Act, implementing measures protecting against money laundering and terrorism financing while bolstering consumer protection.
The Act also delineates permitted activities for qualified payment stablecoin issuers, limiting them to issuing and redeeming payment stablecoins, managing related reserves, providing custodial services, and undertaking activities that directly support these core functions. However, the broad language allows for innovation in using stablecoins as a means of payment or settlement.
USDtb operates on a smart contract architecture that has been specifically upgraded to meet GENIUS Act compliance standards. The transition to Anchorage Digital's infrastructure provides the stablecoin with bank-grade custody and security protocols backed by a federally chartered institution. This institutional-level infrastructure enables smoother integration with the U.S. financial system and provides more accessible, regulated pathways for institutions to hold USDtb.
The stablecoin is designed to be programmable, offering institutional investors the flexibility of blockchain-based assets while maintaining compliance with the highest regulatory standards. This programmability positions USDtb as a foundational tool for modern finance applications, particularly in B2B tokenization scenarios.
USDtb's first-mover advantage as the inaugural GENIUS-compliant stablecoin cannot be overstated. By becoming the first to achieve this regulatory milestone, the project has positioned itself as the leading choice for institutional investors seeking compliant, programmable digital dollars. This timing advantage is particularly significant given that the Stablecoin Certification Review Committee (SCRC) has only begun its work of certifying state regulatory frameworks, with initial certifications not due until July 18, 2026.
The partnership with Anchorage Digital positions the stablecoin issuer as a dominant player in the regulated stablecoin market. Anchorage Digital's status as the only federally chartered crypto bank gives it unique regulatory advantages, and its decision to partner with Ethena Labs signals strong institutional confidence in the project.
With its previous market capitalization of $1.5 billion, USDtb enters the regulated market with substantial scale. Under GENIUS Act requirements, the stablecoin must now maintain full 1:1 backing through a combination of physical currency, U.S. Treasury bills, repurchase agreements, and other regulator-approved low-risk assets. These reserves are subject to regular audits by registered public accounting firms, providing unprecedented transparency and accountability.
The reserve composition and custody arrangements through Anchorage Digital ensure that USDtb meets the highest standards of financial stability and safety. This level of reserve management significantly reduces counterparty risk compared to unregulated or offshore stablecoin alternatives.
The collaboration between Ethena Labs and Anchorage Digital represents a symbiotic relationship that leverages each party's core strengths. Ethena Labs brings proven expertise in stablecoin design and market distribution, having successfully launched USDe, while Anchorage Digital provides the regulatory infrastructure, federal charter, and institutional custody capabilities necessary for GENIUS Act compliance.
This partnership extends beyond USDtb itself—Anchorage Digital's stablecoin issuance platform is designed as a white-label solution for other institutions looking to launch regulated digital dollars, potentially creating a network effect that could benefit USDtb's ecosystem.
Despite its regulatory advantages, USDtb faces several notable risks:
Operational Transition Risk: The recent transfer of smart contract control and upgrade process introduces technical risks, though these should diminish as the new infrastructure stabilizes.
Regulatory Evolution: As the first GENIUS-compliant stablecoin, USDtb operates in a novel regulatory environment. The SCRC's oversight mechanisms and interpretation of compliance standards will continue to evolve, potentially requiring further adaptations.
Competitive Pressure: While USDtb currently enjoys first-mover advantage, established stablecoin issuers like Circle are also positioning for GENIUS Act compliance. The competitive landscape will intensify as more players achieve regulatory approval.
Concentration Risk: The complete reliance on Anchorage Digital for issuance and redemption creates a single point of dependency. Any operational issues at Anchorage Digital could directly impact USDtb functionality.
Limited Scale Flexibility: For state-qualified issuers, the GENIUS Act limits issuance to $10 billion without federal qualification. While this threshold provides room for growth from the current $1.5 billion market cap, it could eventually constrain expansion.
From an investment perspective, USDtb presents a compelling case for institutional adoption:
Regulatory Clarity: The GENIUS Act framework provides unprecedented legal certainty for stablecoin holders and users, addressing one of the primary concerns that has limited institutional participation in crypto markets.
Institutional-Grade Infrastructure: The combination of federal banking oversight, mandatory audits, and bank-grade custody offers risk management characteristics that align with institutional investment policies.
Use Case Expansion: As a regulated payment stablecoin, USDtb can more easily integrate with traditional financial systems and payment rails, potentially expanding its utility beyond pure crypto applications.
Compliance Moat: The stringent requirements for GENIUS Act compliance create barriers to entry for competitors, potentially protecting USDtb's market position in the near term.
However, investors should recognize that as a stablecoin, USDtb is non-interest-bearing under the GENIUS Act framework, meaning it functions purely as a medium of exchange and store of value rather than a yield-generating asset.
The project's success will ultimately depend on its ability to capture institutional demand for compliant digital dollars, maintain operational excellence under federal oversight, and navigate the evolving competitive landscape as more stablecoins achieve regulatory approval. The historic nature of its regulatory achievement provides a strong foundation, but execution in this new regulated environment will be critical to long-term viability.
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