Anchorage Digital Seeks $200-400 Million Funding Ahead of Potential IPO

TLDR:

• Anchorage Digital pursues $200-400M capital raise ahead of planned initial public offering next year.
• Federal charter enables Anchorage to issue stablecoins under GENIUS Act signed into law in July 2024.
• Partnership with Tether announced in September to launch USAT token for the American digital market.
• Company plans to double stablecoin team size within next year despite recent crypto market volatility.

Anchorage Digital is pursuing a substantial capital raise as the company considers going public. The New York-based digital asset custodian aims to secure between $200 million and $400 million in fresh funding.

This move comes ahead of a possible initial public offering planned for next year. The firm’s affiliate operates as the first federally chartered digital-asset bank in the United States.

Federal Charter Enables Stablecoin Issuance Plans

Anchorage Digital Bank NA holds a unique position in the cryptocurrency industry. The federal license permits the company to issue stablecoins under the GENIUS Act. Congress passed this legislation, and it became law in July of this year.

The bank announced a partnership with Tether Holdings SA in September. Tether, based in El Salvador, ranks as the world’s largest stablecoin issuer. Together, they plan to launch the USAT token for the American market.

Stablecoins represent cryptocurrencies designed to maintain consistent value. Most are pegged to the US dollar through cash reserves or similar assets. 

Clearer regulations in the US and European Union have boosted institutional participation. Financial institutions now show greater interest in these digital dollar alternatives.

Expansion Strategy Amid Market Conditions

Chief Executive Officer Nathan McCauley outlined ambitious growth plans in a September interview. The company intends to more than double its stablecoin team within the next year. 

This expansion reflects growing demand for digital dollar products and emerging regulatory frameworks.

Anchorage completed several strategic moves throughout the year. The firm made multiple acquisitions and secured major partnerships. 

New business lines, including stablecoin issuance, were launched to strengthen its market position. 

A company spokesperson described these actions as part of scaling operations in institutional cryptocurrency services.

The latest funding effort proceeds despite recent market volatility. Digital-asset prices experienced a downturn in late October. 

However, cryptocurrency companies continue pursuing public listings. Tether and other industry players have sought record investment amounts from backers.

Anchorage previously raised $350 million in late 2021. KKR & Co. led that funding round, which valued the firm above $3 billion. Goldman Sachs, GIC, and Apollo credit funds participated as well. 

The company is currently finalizing its valuation plan for this new round. An Anchorage spokesperson declined to comment on specific fundraising details or IPO timing.

Bitcoin reached record price levels in October. This milestone occurred as the broader digital asset sector navigates regulatory developments. 

The fundraising discussions remain private, according to sources familiar with the matter.