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.

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.

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

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Harold

CoinCu News