Circle Denying USD Difficulty Rumors, USDT Bid Remains High

CircleThe US-based payments company that issues the USDC stablecoin, denied facing any difficulties in maintaining the coin’s peg to the US dollar. Meanwhile, the supply of Tether (USDT) in one of the most widely used stablecoin pools remains high.

Source: Adobe / photo_gonzo

In a Twitter thread on Saturday, Jeremy AllerCEO and co-founder of Circle, has announce The company decided to intensify its efforts to share information in light of the “key challenges and risks” that many companies faced in the crypto space.

Allaire was linked to a blog post titled “how to be stable”, where the company clarified the support for USDC. Among the key points, the publication claims that “USDC has always been backed by the equivalent value of US dollar-denominated assets”:

“USDC reserves are held entirely in cash and short-term US government bonds, consisting of US Treasury bills with maturities of 3 months or less.”

Circle’s CEO added, “It is understandable that some users are paranoid due to so many cryptocurrency ramblings.” He added that he noticed a “clear confusion” between the USDC reserves and the stablecoin itself.

Allaire said USDC’s reserves are “regulated,” explaining that this includes liabilities relating to assets that Circle can hold as reserves, as well as where they are held.

Circle’s CEO concluded on the matter, “Cercle is in the strongest position ever financially, and we will continue to increase our transparency.”

Aller’s intervention came after some Twitter accounts spread rumors in recent weeks that the company was having difficulty maintaining the US dollar’s peg.

In a statement to Cryptonews.com Last week, a Circle spokesperson said the company’s business remained “strong” and that the department was committed to “building trust and providing complete transparency.” The spokesperson also referred to the monthly audits of the department’s reserves by the auditing company Grant Thornton LLP For details on USDC support.

Rope width stays high on Curve

For its part, USDT, the market’s first stablecoin, is still under pressure in the secondary market, Bloomberg reported on Sunday.

On the stablecoin exchange protocol curve (CRV), USDT’s share of the liquidity pool for USDT, USDC and DAI remains above the level of Terra (LUNA) before the crash.

Bloomberg said the higher supply of USDT indicates some reluctance among traders to hold it Edu PatelCEO of Cryptocurrency Investment Platform Modreks.

Tether denied there was any reason to doubt its reserves, while claiming that some hedge funds were trying to capitalize on the spread of fear in the market. Head of the company’s technology department, Paolo Arduinotweeted in June that Tether is making good on its pledge to “phasing out exposure.” [aux billets de trésorerie] Switching to US Treasuries […]. “

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