Circle CEO Announces New USDC Partnership For Automated Minting & Redemption

Jeremy Allaire, the Circle co-founder, and CEO, recently shared an update about USDC. He announced that they would soon partner with a new transaction banking partner who will offer automated minting and redemption services.

Circle’s minting and redemption process through SigNet is no longer possible after Signature Bank’s closure. As a result, Circle will have to rely on settlements through BNY Mellon for their transactions.

Allaire stated that Circle aims to create trustworthy and automated USDC settlement and reserve processes. They aim to achieve this through excellence and transparency.

He also emphasized the importance of having a completely secure financial system and recommended the implementation of full-reserve digital currency banking. This would protect the fundamental layer of internet money and payment systems from the risks associated with fractional reserve banking.

Allaire highlighted the significance of the Payment Stablecoin Act, which is presently under consideration by Congress. The law aims for stablecoin funds backed by cash at Federal Reserve & Treasury Bills, creating a legal framework.

According to Allaire’s Twitter post, Circle’s USDC operations will start on Monday. The operations will feature automated settlement through their new partnership with Cross River Bank.

As per a blog post, all the individuals who have deposited money in Silicon Valley Bank and Signature Bank will receive total compensation. The $3.3 billion USDC reserve deposit held at Silicon Valley Bank will be entirely accessible once the U.S. banks open the following day.

 USDC: A Stablecoin Built On Trust & Safety By Circle

 Circle has declared its commitment to broadening its banking collaborations and has unveiled automated USDC creation and redemption for its customers. It will be offered via new banking partners set to launch later this week.

 Allaire, the CEO of Circle, highlighted that maintaining trust, safety, and the ability to redeem each USDC in circulation on a one-to-one basis is their highest priority. This remains the case even when bank contagion could impact the cryptocurrency markets.

He states that short-term U.S. Treasury Bills, amounting to 77% ($32.4B), back the reserve of USDC. He has also offered more details about it. The remaining 23% ($9.7B) of the USDC reserve is also primarily housed at BNY Mellon, and both funds are safely held in custody by BNY Mellon.

Circle CEO further emphasized that monthly USDC attestation reports are accessible on Circle’s website. Anyone can view the liquidity ladder down to the CUSIP number on T-Bills via the USDXX ticker.

Despite recent bank closures, Circle ensures the safety of USDC deposits and operations with protective measures. They are devoted to supporting full-reserve digital currency banking and developing a reliable and automated USDC settlement and reserve system.

Related Reading | IMF Warns Developing Countries Against Granting Legal Tender Status to Crypto Assets

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing

Comments (No)

Leave a Reply