Circle CEO Believes USDC Provider Is In Strongest Position Ever

Jeremy Allaire, the Circle CEO Believes USDC provider as the company behind it, is in the strongest financial position ever so let’s read more today in our latest cryptocurrency news.

The Circle CEO Believes that the company is in a great financial situation and moved to quell the rumors that the company’s stablecoin is on the edge of crashing. Allaire said that he can understand why the crypto community will be paranoid at this time about USDC given the recent collapse of the crypto projects:

“Circle is in the strongest position it has ever been in financially, and we will continue to increase our transparency.”

7/ On the last point re: Circle Yield, we will share a blog post this week, but the essence is that because Circle Yield is regulated, over-collateralized, offered as a security to only accredited investors, and has a very conservative UW approach, we have had zero issues.

— Jeremy Allaire (@jerallaire) July 2, 2022

To back up his words, Allaire shared Circle’s recent reports on trust and transparency as well as audits and the state of the USDC liquidity. The Circle CEO’s remarks came amid the rumors that the crypto company was at risk of defaulting the reserves due to the larger interest payments that it has to fulfill to crypto banks like Silvergate and Signature. The stablecoin is being used in lending activities with companies such as Galaxy, Celsius, BlockFi, Genesis, and Three Arrows Capital. Each of these companies was caught up in a liquidity crisis that sent shockwaves across the entire industry. Allaire seems to have addressed the rumors and explained that there’s a difference between the USDC reserves and the USDC used in lending markets.  Jeremy Allaire wrote:

“There is also some obvious confusion between USDC reserves — which are regulated (where and what we can hold), examined (by regulators and assurance firms), and transparent (weekly flows and composition) — and USDC that itself is used in lending markets, away from Circle.”

Circle's USDC scheme is on the brink of collapse. If you read their SPAC IPO filings its clear they have been losing money constantly but theres something dirtier happening underneath. They're at major risk on defaulting on USDC reserves. A deep dive 🧵 on USDC. 👇 pic.twitter.com/GgN5oeD7gO

— Geralt Davidson (@CryptoInsider23) June 29, 2022

He added that circle will share a blog post soon this week and noted that the product in question is regulated and over-collateralized and is offered to accredited investors only with whom Circle had zero issues. Circle is eyeing a public listing via the special purpose acquisition company that was valued at billion and in addition to the audits, the company published monthly statements of the size of the USDC reserve.
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6/ There is also some obvious confusion between USDC reserves — which are regulated (where and what we can hold), examined (by regulators and assurance firms), and transparent (weekly flows and composition) — and USDC that itself is used in lending markets, away from Circle.

— Jeremy Allaire (@jerallaire) July 2, 2022

The USDC stablecoin is the second biggest stabelcoin on the market with a market cap of $55.8 billion and about $10 billion away from Tether. Circle insisted that the stablecoin is redeemable 1 for US dollars:

“We can make this assertion confidently because USDC is fully reserved with short-dated US Treasuries (~80%) and cash (~20%), denominated in US dollars, and held directly with leading US financial institutions and custodians within the US regulatory perimeter.”