According to CEO Jeremy Allaire, Circle – the world’s second-largest stablecoin issuer USDC is in “the strongest financial position”.

The statement comes amid increased scrutiny of stablecoins following the failure of the UST in May, and observers calling for more transparency on assets that support the US dollar-pegged cryptocurrency.

Jeremy Allaire said Circle has strong liquidity and capital base, helping to allay market concerns about the company losing millions of dollars in revenue as a result of paying certain banks a certain percentage to hold its assets surname. There are also some people worried about the company’s lending practices.

In response to those concerns, Jeremy Allaire tweeted on Saturday:

Circle has released a monthly testimonial report on its assets since its launch in September 2018. In May, after the Terra blockchain collapsed, the company promised to be more transparent about its operations and began reporting USDC-backed reserves every week.

According to the latest update, USDC reserves include $13.6 billion in cash and $42.1 billion in 3-month U.S. Treasury bills. The reserve is equivalent to the value of USDC in circulation, totaling $55.7 billion as of July 1. Meanwhile, Circle had just $1 billion in assets two years ago.

Analyst Adam Cochran, who analyzed Circle’s filing with the Securities and Exchange Commission (SEC) regarding the listing proposal last year, said:

Stablecoins are an important aspect of the cryptocurrency ecosystem. Traders use them to quickly convert dollar value between exchanges, helping them exploit arbitrage opportunities.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

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News

CEO Jeremy Allaire: Circle in ‘Strongest Financial Position’ Ever

According to CEO Jeremy Allaire, Circle – the world’s second-largest stablecoin issuer USDC is in “the strongest financial position”.

The statement comes amid increased scrutiny of stablecoins following the failure of the UST in May, and observers calling for more transparency on assets that support the US dollar-pegged cryptocurrency.

Jeremy Allaire said Circle has strong liquidity and capital base, helping to allay market concerns about the company losing millions of dollars in revenue as a result of paying certain banks a certain percentage to hold its assets surname. There are also some people worried about the company’s lending practices.

I wonder how this is going to affect @circlepay's yield product. Genesis was the borrower of the USDC and collateralized with BTC. With BTC -71% from peak & Genesis having lost a bunch to bad loans, where does that leave the USDC people locked up in Earn?https://t.co/Ijni2aCVOS

— Eric Kryski (@ekryski) June 30, 2022

In response to those concerns, Jeremy Allaire tweeted on Saturday:

1/ With so many firms facing fundamental challenges and risks, Circle has amped up our own information about Circle and USDC. Sharing it here so it's fresh for people to review. We started publishing these in the days following the Terra collapse. https://t.co/SYNpwYxUif

— Jeremy Allaire (@jerallaire) July 2, 2022

Circle has released a monthly testimonial report on its assets since its launch in September 2018. In May, after the Terra blockchain collapsed, the company promised to be more transparent about its operations and began reporting USDC-backed reserves every week.

According to the latest update, USDC reserves include $13.6 billion in cash and $42.1 billion in 3-month U.S. Treasury bills. The reserve is equivalent to the value of USDC in circulation, totaling $55.7 billion as of July 1. Meanwhile, Circle had just $1 billion in assets two years ago.

Analyst Adam Cochran, who analyzed Circle’s filing with the Securities and Exchange Commission (SEC) regarding the listing proposal last year, said:

1/25

A lot of people worried about some Circle FUD (especially since samczsun just posted an unknown hashed message)

Here's a run down of why I've got zero concerns and will happily buy your discounted USDC if you get cold feet:

— Adam Cochran (adamscochran.eth) (@adamscochran) July 1, 2022

Stablecoins are an important aspect of the cryptocurrency ecosystem. Traders use them to quickly convert dollar value between exchanges, helping them exploit arbitrage opportunities.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Harold

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