Circle CEO Jeremy Allaire Says Stablecoin-Issuer Not Affected by Troubles at Crypto Exchange FTX

The CEO of USD Coin (USDC) issuer Circle has said liquidity issues on crypto exchange FTX will not have a major impact on the stablecoin company.

Jeremy Allaire To tell Circle serves both FTX and Alameda Research. Alameda Research is a quant his crypto trading firm founded by Sam Bankman-Fried, CEO of FTX.

“Circle has no material exposure to FTX and Alameda. FTX has been a Circle Payment API customer for the past 18 months, providing card and ACH services for customer transactions. Beta products use FTX and other exchanges for BTC/ETH liquidity.”

He clarifies that his company is not affected by the issues plaguing the Bahamas-based exchange.

“Circle has never loaned to FTX or Alameda, received FTT as collateral, held positions in FTT, or traded FTT. It is not.”

Allaire said Circle, like many other cryptocurrency exchanges, has a small stake in FTX.

“Circle is a minority shareholder of FTX, and FTX is a minority shareholder of Circle. Circle is also a minority shareholder of Kraken, Coinbase, and Binance US. and an automated system of 1:1 dollar settlements to create USDC and redeem USDC.”

As fear and uncertainty surround USDC in the recession, Allaire said Circle maintains very high standards of transparency, auditing and risk management. He has said that his 80% of USDC reserves are held in US Treasury bills and held in BNY Mellon. The company’s cash reserves are also held in several fully segregated bank accounts, he said.

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