03 Jul 2022

Circle denies rumors USDC stablecoin is troubled amid market downturn 

Circle denies rumors USDC stablecoin is troubled amid market downturn 

Circle’s founder and CEO Jeremy Allaire tweeted a thread of statements and linked blog posts on Saturday addressing rumors that the company’s USDC stablecoin was near collapse amid the crypto market downturn. 

The first post, titled “How to be stable,” noted among other points that USDC is fully backed:  

“USDC has always been backed by the equivalent value of U.S. dollar denominated assets; USDC reserves are kept in the management and custody of leading U.S. financial institutions, including BlackRock and Bank of New York Mellon,” the post read, before launching into a lengthy disclosure on Circle’s reserves and procedures. 

Allaire went on later in the thread to add: “It's understandable why some users would be paranoid given the history of hucksters in crypto. We have always tried to hold ourselves to the highest standards afford to us. That's enabled us to work with regulators, top-tier assurance firms, and leading FIs.” 

He concluded by saying that crypto payments company Circle was "in the strongest position it has ever been in financially, and we will continue to increase our transparency.” 

At the time of writing, USDC was 1:1 with the US dollar, according to CoinGecko. 

In mid-June, Circle introduced a new euro-centric stablecoin, EUROC. Earlier in the month it agreed to acquire Cybavo, a crypto infrastructure startup that serves institutional customers. 

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