Anchorage partners with JPMorgan to hold stablecoin reserves in tokenized money market funds instead of cash, reducing yield drag and counterparty risk.
DeFi & Yields ·
Anchorage has partnered with JPMorgan to restructure how stablecoin reserves are held, moving away from traditional cash buffers toward tokenized money market funds. According to remarks from Anchorage's Rachel Anderika, conventional stablecoin reserve models typically maintain 10–15% of reserves in cash, a practice that creates significant yield drag and introduces counterparty risk.
The new arrangement allows Anchorage to access liquidity on demand through tokenized money market funds rather than holding a static cash position. This approach aims to improve capital efficiency while reducing the inherent risks associated with large idle cash holdings.
The specifics of the partnership structure—including which money market fund products are involved, the scale of reserves being deployed, and any operational or regulatory requirements—remain unspecified in available disclosures.