- Jeremy Allaire, CEO of Circle Financial, pointed out in various media the differences of USDC with respect to its competitors and what are the assets that support the stablecoin USD Coin.
- Circle funds are protected by the most important financial organizations of the North American union, such as Bank of New York Mellon.
- The existing reserve of the USD Coin is held entirely in physical money, in short-term United States government obligations, such as Treasury bills with a maturity date of 3 months or less.
Since last week, there is a fact that is on the lips of all crypto asset enthusiasts and those interested in cryptocurrencies in general, the TerraUSD (UST) stablecoin decoupling incident, which has put the way the stablecoin economy works in the eye of the storm.
Thus, after the collapse suffered by UST, Jeremy Allaire, CEO of Circle Financial, noted in various media the differences between USDC and its competitorsin addition to calling for the implementation of “a more regulatory framework” in relation to stablecoins.
Circle is increasing trust and transparency efforts
On May 13, Allaire wrote on his official Twitter account that Circle was “increasing its efforts” when it came to “trust and transparency” of the USDC.
“We are currently reinforcing our efforts on the issues that people care about the most, trust and transparency with USDC” the director of Circle pointed out.
Allaire also shared a post written by Jeremy Fox-Geenfinancial director of the company, who specifies in some points about what Allaire refers to, when touching on the subject of transparency.
In the publication, Fox-Geen pointed out that “USDC is a currency that has always been characterized by being supported by the analogous value of assets designated in dollars.”
Likewise, it was indicated that in addition,The funds are protected by the most important financial organizations of the North American union, such as Bank of New York Mellon.
The Circle report added thatThe existing reserve of the USD Coin is held entirely in physical money, as well as short-term United States government obligations, such as Treasury bills with a maturity date of 3 months or less.
Jeremy Fox-Geen also explained that the consortium has published monthly certifications from the accounting firm Grant Thornton International.
“The USDC reserve is at least the value of USDC assets in circulation, providing users with a proven third-party guarantee”, Fox-Geen summarized in the publication.
The Executive Director emphasized that USDC could invariably be exchanged on a one-for-one basis for US dollars. Similarly, the blog post concludes that today there are a large number of projects and entities, which within their activities, is to contribute to the exchange of USDC in 190 nations.
Stablecoin Growth
As pointed out by the media NewsBitcoinThe use of stablecoins as a hedge has long been popularized among many participants within the cryptocurrency community, and more recently they have begun to be used to obtain interest and high-yield yields, through loans.
Similarly, in their beginnings stablecoins were centralized programs, however, over the years, these currencies have evolved and adapted to the market, paving the way for some stable currencies that have the characteristic of being decentralized or algorithmic.
The stablecoin market is led by Tether (USDT) and USD Coin (USDC), two centralized currencies that have as a guarantee that each stablecoin can be exchanged for the parity of 1:1 with the dollar by maintaining reserves that cover the funds in circulation.
These two coins are followed by Binance USD, the stablecoin of the Binance exchange. These three cryptocurrencies are, by their market capitalization, in the top 10 of the crypto market. Even before its fall, TerraUSD (UST) was in this group above the exchange’s stablecoin.
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