Why did USDC Depeg make? Circle CEO gives the insider story

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Circle-CEO Jeremy Allaire sprach am Dienstag und fasste das Drama um die Silicon Valley Bank (SVB) und USDC aus der Sicht seines Unternehmens zusammen. Laut Allaire werden nun alle Barreserven des Unternehmens bei der Bank of New York Melon gelagert. Krypto vor dem Banking retten Während der Interview, sagte Allaire, sein Unternehmen sei bereit, die eigenen Unternehmensmittel von Circle zu verwenden, um seine Unterwasser-Barreserven vor der Eröffnung der Banken am Montag zu stützen. Das Unternehmen hielt bei SVB 3,3 Milliarden US-Dollar, die es kurzzeitig verlor, nachdem der VC-Banking-Riese am Freitag von den Aufsichtsbehörden beansprucht worden war. „Glücklicherweise mussten wir das …
Circle CEO Jeremy Allaire spoke on Tuesday and summarized the drama about Silicon Valley Bank (SVB) and USDC from the perspective of his company. According to Allaire, all of the company of the company at the Bank of New York Melon are now being stored. Crypto saved from banking during the interview, Allaire said that his company was ready to use Circle's own company funds to support his underwater barres before the banks opened on Monday. The company held $ 3.3 billion at SVB, which it lost for a short time after the VC Banking giant had been claimed by the supervisory authorities on Friday. “Fortunately, we had to ... (Symbolbild/KNAT)

Circle CEO Jeremy Allaire spoke on Tuesday and summarized the drama about Silicon Valley Bank (SVB) and USDC from the perspective of his company.

According to Allaire, all barres reserves of the company are now stored at the Bank of New York Melon.

crypto saved from banking

During the Interview , Allaire said that his company was ready to use CIRCLE's own company to support his underwater bart reserves before the banks opened on Monday. The company held $ 3.3 billion at SVB, which was briefly lost after the VC Banking giant had been claimed by the supervisory authorities on Friday.

"Fortunately we didn't have to do that," said Allaire. "We relocated all of our assets to the Bank of New York Melon and held in the Circle Reserve Find, which manages short-term T-BILLS Schwarzfels

The reserves of Circle of $ 39 billion are used to secure its 39 billion USDC token on the free market. USDC is supposed to maintain a 1-1 price ratio to the US dollar, which it briefly lost on Friday after Circle reveals its SVB engagement. This carries great risks for both USDC holders and for defi protocols that rely on USDC as loan safety.

Fortunately for circle, however, the Federal Reserve occurred on Sunday that all losses were brought in together with all other inserts from the SVB. Nevertheless, the CEO said that the whole ordeal smelled of irony:

"There was a lot of talk about protecting the banking system from crypto, [but] Here we have a situation in which we try to protect a digital dollar from the banking system," he said.

Federal regulatory authorities have published various warnings font-weight: 400 "> to banks about the risks that have been connected to the care of companies in the crypta sector since the collapse of FTX in November. A former congress member and board member of the crypto-friendly Signature Bank, Barney Frank, claims on Monday that the bank was probably a deliberate attack on Krypto without objective justification.

In terms of SVB, however, Allaire believes that their confiscation and the subsequent rescue of the inserts in view of the "systemic risks" that the collapse of the bank for the financial system was "the right way".

StableCoin legislation required

Allaire does not believe that USDC is likely to be regarded by the supervisory authorities as a security-he is also not concerned about a possible complaint from the Securities and Exchange Commission (Sec) after the authority has threatened the competing StableCoin emitters. paxos with the same last month.

"We have heard very clearly that payment booths-which are designed as a medium and correspond to the corresponding regulatory standards-should be regulated as this type of payment technology ... and that is where the political decision-makers seem to go anywhere", he explained .

The StableCoin legislation has to be passed in the United States, which means that the SEC with the Commodities and futures trading commission (CFTC) leads to whom War wages 400 "> The crypto industry. The chairman of the CFTC, Rostin Benham, told the congress last week that stable coins like Tether meet the agency's criteria in order to be a commodity.

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