Analysis Today TheBitTimes.com

Circle’s USDC stablecoin has dropped from $45 billion in circulation at the start of 2023 to just $26 billion as the summer winds down. Stablecoin issuer Circle has a $1 billion cash reserve pegged as insurance against a declining market capitalization and fresh competition from the traditional finance and technology industries, said CEO Jeremy Allaire.  In an interview with Bloomberg, Allaire revealed the war chest and shared his views on the uptick in competition from organizations such as PayPal that are new to the stablecoin space: “I expect you will see many many, not just internet payments firms, but also all kinds of financial services companies and others begin to get more involved in this. It’s great to have this new competition. I do think it’s going to drive more and more companies into the field.” Related: PayPal launches PYUSD stablecoin for payment Circle is best known for its USDC (USDC) stablecoin, a digital token similar in design to regular cryptocurrency but backe...

Tarbert’s experience to benefit Circle Heath Tarbert has served as the 14th chairman and chief executive of the CFTC and vice chairman of the International Organization of Securities Commissions. He was previously assistant secretary of the U.S. Treasury for international markets, concurrently serving as G-7/G-20 deputy finance minister, a member of the Financial Stability Board, and U.S. executive director of the World Bank Group. During his early career, Tarbert served as a Supreme Court law clerk, associate White House counsel and special counsel to the U.S. Senate Committee on Banking, Housing and Urban Affairs. advertisement Tarbert was also the chief legal officer at Citadel Securities. Pivotal time for our company, and the broader industry: Circle CEO Welcoming Tarbert onboard, Circle CEO Jeremy Allaire said, “it’s a pivotal time for our company, and the broader industry, and a critical part of the path forward is building durable relat...

According to Circle, USDC liquidity operations will "resume as normal when banks open on Monday morning in the United States," enabling USDC redemption at 1:1 with the U.S. dollar. USD Coin (USDC) issuer Circle plans to use " corporate resources" to cover the shortfall on its reserves following Silicon Valley Bank's shutdown, said the company in a statement on March 11.  According to Circle, USDC liquidity operations will "resume as normal when banks open on Monday morning in the United States," enabling USDC redemption at 1:1 with the U.S. dollar. The announcement came after the stablecoin lost its $1 peg on March 11 to trade as low as $0.87 before slowly re-pegging at $0.97 at the time of publication. The stablecoin lost its peg after the disclosure of $3.3 billion of Circle's reserve at Silicon Valley Bank. Sharing an Update on USDC and Silicon Valley Bank. https://t.co/Ug3qpot8sJ — Jeremy Allaire (@jerallaire) March 11, 2023 Silicon Vall...