Key Takeaways
- Anchorage Digital will distribute rewards on Ethena’s tokens, complying with the GENIUS Act.
- The GENIUS Act forbids interest payments on stablecoins but allows yield-like rewards.
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Anchorage Digital, a federally chartered crypto custodian, today announced it is developing a GENIUS Act–compliant framework to support reward mechanisms for Ethena’s tokens without violating the stablecoin interest restrictions set by the new law.
The bank is developing a template for distributing rewards on Ethena’s stablecoin tokens that aligns with GENIUS Act requirements. The law prohibits interest payments on stablecoins but permits the distribution of yield-like rewards to token holders.
Ethena Labs operates USDe, a synthetic stablecoin designed to maintain stability through various backing mechanisms. The company also developed USDtb in partnership with Anchorage Digital, functioning as the first stablecoin compliant with the GENIUS Act.
USDtb has been established as a federally regulated digital asset in the US, enabling features like reward distribution to holders while adhering to federal regulations.
