The crypto industry has increasingly adopted a controversial "pay-to-play" operational model—a practice that exploits consumers, fosters market opacity, and now infiltrates regulated sectors like stablecoins and custodial services.
The Anchorage Digital Controversy
Last week, an Anchorage Digital executive approached me, pitching their "Genius Billing-as-a-Service" product. I declined, citing our ongoing licensing negotiations, compliance track record, and deep expertise in regulated markets through partnerships with State Street and VanEck.
Shortly after, Anchorage published "Stablecoin Security Matrix: Enabling Safe Conversions", claiming they'd delist USDC and AUSD due to "security concerns." The report contained verifiable inaccuracies—facts previously corrected by VanEck representatives but still published unchanged. Notably:
"We identified concentration risks tied to issuer structures—institutions should evaluate this carefully."
Ironically, VanEck has served institutional clients longer than Anchorage has existed, with assets under management exceeding the combined value of all major stablecoins except Tether.
Undisclosed Conflicts of Interest
Anchorage failed to disclose its revenue-sharing agreement with Paxos (issuer of 3/4 top-rated stablecoins in their report). Partners like Anchorage earn:
- Fee splits on stablecoin minting
- Priority revenue agreements for platform-hosted stablecoins
This financial relationship directly impacts the report’s neutrality but was omitted from disclosures.
Misinformation and Market Manipulation
Delisting USDC/AUSD for commercial reasons would be understandable. However, justifying this via fabricated "security risks" is indefensible.
Fact-Checking AUSD
- Custody: State Street serves as cash custodian and fund administrator for Agora’s reserve.
- Management: VanEck (>$100B AUM) is Agora’s investment manager.
- Scoring: By Anchorage’s own matrix, AUSD should rank similarly to USDG if criteria were uniformly applied.
Circle (USDC issuer) faces similar smear tactics. Claims that USDC is less secure than USDT or PYUSD ignore:
- NYSE-listed status
- Years of audited financials
- Institutional-grade transparency
FAQ: Pay-to-Play Risks
Q: How does "pay-to-play" harm consumers?
A: It prioritizes profit over fairness, hiding conflicts that influence product listings or ratings.
Q: Why disclose financial ties in stablecoin reports?
A: Transparency prevents biased recommendations—like Anchorage promoting Paxos-linked stablecoins.
Q: Can regulators intervene?
A: Yes. The SEC has penalized undisclosed paid promotions in traditional finance; crypto faces similar scrutiny.
Agora’s Commitment to Integrity
As pioneers of open partnerships, Agora refuses to "pay for participation." Our priorities:
- Client-driven transparency
- Global accessibility for programmable money
👉 Explore ethical stablecoin frameworks
The fight for fairness continues—no paid seats at our table.
Nick van Eck
CEO & Co-Founder, Agora
👉 Learn how we're rebuilding trust in digital assets
### Key SEO Elements
- **Primary Keywords**: pay-to-play, stablecoin security, crypto transparency
- **Secondary Keywords**: Anchorage Digital, USDC, AUSD, Paxos, VanEck
- **Structure**: H2/H3 headings for scannability, bulleted lists, blockquotes for emphasis