The Circle stablecoin provider sets its eyes on a public listing in the fourth quarter of the year according to the company’s CFO Jeremy Fox-Geen so let’s have a closer look at our latest USD Coin news.
The Circle stablecoin provider has plans to go public this year despite the bearish market and the CFO said that the company is already registered as a financial services company like Apple or PayPal. Circle Yield, the company’s interest-earning product is regulated by the Bermuda Monetary Authority and Fox-Geen expects Circle to use the situation and go public via a SPAC deal at the end of 2022. Amid the concerns that USDC will fall to similar issues as Terra did, the chief financial officer Jeremy Fox-Geen said that this will not be the case with circle.
Last week, Circle released its first monthly full breakdown of the assets that back the token. The provider noted that the USDC reserve is held in cash exclusively and three-month US treasury bonds that separate it from the company’s operations. According to the reports, the total amount of USD in circulation from June was 55,569,519,982 tokens while the reserve assets that backed the US dollar-pegged coin reached $55.7 billion.
As of this moment, circle had $13.58 billion in cash in US banks like the Silvergate Bank, Bank of New York Mellon, and Silicon Valley Bank. Another $42.1 billion is also held in treasury bonds. The disclosure came a little over a week after the CEO Jeremy Allaire hit back at the rumors that USDC will go down as Terra did, stating that the Boston-based company is in the strongest position ever. This is what Fox-Geen confirmed and pointed out the company is actually a US-registered financial services company that operates under the same regulatory framework which applies to payment companies like ApplePay and Apple, PayPal, Venmo, Block or Cash app. Fox-Geen added:
“The framework we operate under is widely trusted. It is used by the largest payments companies and protects hundreds of tens if not hundreds of millions of individuals with billions of dollars of money in these systems.”
Responding to the claims that Circle already started losing money because the company paid incentives to the reserve holders, the CFO added that the crypto term for these allegations is FUD, much of which is always inaccurate:
“These are absurd rumors, and the people who wrote them don’t understand how banks work. Circle does not pay any banks to hold fiat currency. That’s not how banks work. Banks pay their customers interest to receive that fiat currency.”
Even if Circle had an arrangement with the bank, the arrangement will have been documented and disclosed in the public SEC filings that can be easily downloaded.
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