Cryptocurrency-focused bank Anchorage Digital has launched a partnership with digital asset payment infrastructure company Lydian.
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With this collaboration, Lydian has onboarded to Anchorage stablecoin minting and redemption, with digital assets custodied with the bank, the companies said Tuesday (Nov. 10).
“Stablecoins reach everyday commerce when the providers merchants already use can accept them, and those providers need a regulated bank in the middle of the flow,” Nathan McCauley, co-founder and CEO of Anchorage Digital, said in a news release provided to PYMNTS.
“Lydian is building the acceptance layer for stablecoin payments at the point of sale and bringing it to merchants of every size.”
Offering the minting, redemption, custody, and settlement infrastructure “behind that is exactly the role a federally chartered crypto bank should play,” he added.
The release noted that Lydian develops the “acceptance layer” that payment and point-of-sale providers plug into so their merchants can accept stablecoins at checkout.
“A customer pays from any digital wallet, in any supported stablecoin or digital asset, and the merchant receives local currency the same way they would from a card, with no need to hold or manage digital assets themselves,” the companies said.
Anchorage helps uphold that merchant experience. Lydian uses the bank to mint stablecoins from fiat and redeem them back to fiat, with assets kept in institutional custody at a federally chartered bank with segregated accounts and audited controls, the release said.
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