Amid the chaotic meltdown, asset movement from Circle to FTX surfaced. It was also reported that Alameda could be the second-largest issuer of Tether.
CEO of USDC issuer, Jeremy Allaire, assured the community that Circle has no material exposure to the troubled firms. Tether’s chief technology officer Paolo Ardoino also spoke on the matter.As the company distanced itself from the chaotic turn of events, AllaireFTX has been a customer of Circle Payment APIs for more than a year and provided card and ACH services for client transactions. He added that Circle’s crypto payments beta product uses FTX and other exchanges for BTC/ETH liquidity.
Alameda, on the other hand, has been a firm customer for many years and leverages its USDC service for creating and redeeming the stablecoin. Allaire revealed that Circle has never made loans to SBF’s two companies and has never received FTX’s native token, FTT, as collateral, nor has it ever held a position in or traded FTT.
“Circle is a tiny equity holder of FTX, and FTX is a tiny equity holder of Circle. Circle is also a tiny equity holder of Kraken, Coinbase, and BinanceUS. 00% of USDC flows from Circle to FTX or Alameda are responsive to our ToS and automated systems of 1:1 dollar settlement to mint USDC and redeem USDC.”
While dispelling FUD about Silvergate and risks for USDC, the exec said the crypto bank is one of more than 10 entities that Circle is engaged with globally and holds a small portion of the stablecoin cash reserves with it to support USDC settlement flows with their users.Tether CTO, Ardoino clarified that the stablecoin issuer does not have any exposure to either of the distressed companies.
Hi! We would like to offer you a cooperation contract. If you would like to be an ambassador at skaflicofficial kindly DM me for more information.