Circle’s stablecoin, USD Coin (USDC), lost its peg to the dollar when Silicon Valley Bank collapsed. Fortunately, it managed to regain its 1:1 parity with the US dollar shortly thereafter. Circle has also found a way to eliminate its backlog. Now, the issuer of USDC tokens no longer wishes to entrust its reserves to TradFi partners. Instead, he would like to turn to the Fed.
Circle wants the Fed to keep all of its cash
After narrowly avoiding drama with USDC, Circle no longer wants to rely on TradFi partners. The crypto firm now prefers to keep all its reserves with the Fed. She would also like use US central bank payment rails. Raagulan Pathy, Circle’s vice president for Asia-Pacific, made this point recently at the WOW Summit in Hong Kong. He stressed that such a measure would make it possible to “free ourselves from our dependence on TradFi partners“.
Pathy clarified that currently USDC issuer owns 80% of its reserves and its cash. He also said: “We have no plans to move reserves at this time. We have a very strong fund to determine where the reserves are. We spent a lot of time creating transparency around this and establishing it“.
Circle is “on the road to globalization”!
According to Pathy, Circle plans to set up “more banking partnerships globally“. The vice president has explained : “In general, as a company, we are on the road to globalization. We are looking to have more staff on the ground in areas where we see an enabling environment“.
Pathy referred to the regulatory regimes of countries like Singapore. According to him, the latter deserves to be congratulated for his “measured approach to regulation“. The Vice President indicated that Circle has a strong presence in Singapore. He also talked about a recent acquisition of the company in Taiwan.
Many crypto businesses consider the US to be tough on new industry regulation. But Pathy said the US regulatory landscape is extremely fluid. In this context, Circle intends to keep its head office in the United States. However, rumors have recently swirled that Circle may be the next target for the US SEC. The company was quick to refute these allegations.
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