Circle founder and CEO Jeremy Allaire shared a blog post addressing rumors that the company’s USDC stablecoin is about to collapse under the influence of the crypto market downturn.
“USDC Assets Always Backed by Equivalents of US Dollar Assets”
The first post titled “How to be stable” stated, among other things, that USDC is fully backed by other assets:
“USDC has always been backed by the equivalent value of assets in US dollars; USDC reserves are held under the management and oversight of leading US financial institutions, including BlackRock and Bank of New York Mellon.”
In addition, the shared post also included a long explanation about Circle’s reserves and procedures.
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
Allaire added, “Given the history of scams in crypto, it’s understandable why some users are paranoid. We have always tried to hold ourselves to the highest standards offered to us. This allowed us to work with regulators, top assurance firms and leading financial institutions.”
“Circle Financially Stronger Than Ever”
CEO’s words cryptocurrency He concluded by saying that payments company Circle “is in a stronger position financially than ever before and will continue to increase its transparency.”
At the time of this writing, USDC is trading 1:1 against the US dollar, according to CoinGecko data.
In mid-June, Circle introduced EUROC, a new euro-focused stablecoin. Earlier in the month, it agreed to acquire Cybavo, a crypto infrastructure startup serving institutional clients.
*Not investment advice.