TechFlow news — Circle CEO Jeremy Allaire stated:
1. Circle has no significant exposure to FTX or Alameda. Over the past 18 months, FTX has been a customer of Circle’s Payment API, using card and ACH services for client transfers. Circle’s beta crypto payments product uses FTX and other exchanges to provide BTC/ETH liquidity.
2. Alameda has been a Circle customer for years, using Circle’s USDC services to mint and redeem USDC. They have had access to exactly the same products and terms as all of Circle’s institutional clients.
3. Circle has never lent to FTX or Alameda, never accepted FTT as collateral, and never held or traded FTT. Under no circumstances does Circle engage in proprietary trading.
4. Circle is a minor shareholder in FTX, and FTX is a minor shareholder in Circle. Circle is also a minor shareholder in Kraken, Coinbase, and BinanceUS.
5. All USDC flows from Circle to FTX or Alameda are processed through Circle’s automated systems complying with its Terms of Service and 1:1 USD settlement, for minting and redeeming USDC.
6. There is also significant misinformation regarding Silvergate and USDC risk. Silvergate is one of over ten banking partners Circle works with globally. Circle holds a small portion of USDC cash reserves at Silvergate to support USDC settlement flows with customers.
7. 80% of USDC reserves are held in U.S. Treasury bills of $3 million or less, custodied by BNYM. The remaining cash reserves are held in fully segregated accounts across 7-8 banks for the convenience of USDC holders.Original link
