coinculture.com
You might also like
Cardano Vasil Hard Fork Is Now ‘Inevitable’ After ‘Successful’ Testnet
Tether Shrinks Commercial Paper Reserves By Another $5B
Circle, the U.S.-based payments firm producing the stablecoin USD coin (USDC), has denied any problem keeping the coin’s peg to the U.S. dollar. Meanwhile, the tether (USDT) coin supply on one of the most used stablecoin liquidity pools remains high.
Circle denies USDC trouble rumors. Source: Adobe/photo_gonzo
Jeremy Allaire, CEO and co-founder of Circle, said that the business has opted to increase its information-sharing efforts in light of the primary issues and dangers that many companies in the crypto industry have encountered.
Allaire elaborated on its support of USDC. Among other claims, the article said that USDC has always been supported by assets denominated in U.S. dollars.
“The USDC reserve is held entirely in cash and short-dated U.S. government obligations, consisting of U.S. Treasuries with maturities of 3 months or less.”
Given the history of fraudsters in cryptocurrency, the CEO of Circle noted that it’s understandable why some consumers might be wary. He had witnessed an apparent misunderstanding between USDC reserves and the actual stablecoin.
Allaire said that the reserves of USDC are regulated, adding that this includes restrictions around what assets Circle might maintain as reserves and where they can be stored. Moreover, USDC is a stablecoin utilized in loan markets outside of Circle.
The CEO of Circle further remarked, “Circle is in the strongest position it has ever been in financially, and we will continue to increase our transparency.” In recent weeks, certain Twitter accounts have circulated allegations regarding Circle, saying that the business is having trouble maintaining USDC’s U.S. dollar peg.
A spokesman for Circle said that the company’s business was robust and that Circle was devoted to creating trust and giving complete transparency. For more information on USDC’s support, the spokeswoman pointed to monthly audits of Circle’s reserves by auditing firm Grant Thornton LLP.
Tether supply continues to rise on Curve.
Bloomberg reported on Sunday that the most popular stablecoin USDT, created by tether, remains under pressure on the secondary market.
On the stablecoin swapping protocol Curve (CRV), USDT’s supply share in a liquidity pool for USDT, USDC, and DAI is still higher than before the Terra (LUNA) crash.
Bloomberg quoted Edu Patel, CEO of crypto investing platform Mudrex, saying that the increased supply of USDT indicated traders’ hesitance to keep it.
Tether has disputed any cause to mistrust its reserves and said that some hedge funds are attempting to benefit from increasing market anxiety. Paolo Ardoino, the company’s chief technical officer, said on Twitter in June that Tether is honouring its pledge to “phase out [commercial paper] exposure and move into U.S. Treasuries […].”