Circle CEO Assures 100% Safety of USDC Reserves, Transfer Resumes

• Jeremy Allaire tweeted that the company’s 100% USDC reserves are safe, in reference to the SVB collapse.
• Circle’s CEO assured that the company would transfer the remaining SVB cash to BNY Mellon.
• He added that Circle would be focusing on building robust and automated USDC settlement.

Computer entrepreneur and CEO of the digital currency company Circle Jeremy Allaire shared a Twitter thread in the early hours of March 13 updating the current status of the company’s USDC reserves and Silicon Valley Bank’s deposits. He claimed that the whole deposits at the bank are safe and would be available for banking the next day itself, with reference to the debacle of SVB on March 10. 

Notably, Allaire tweeted sharing his happiness in witnessing the US government and regulators taking “crucial steps to mitigate risks extending from the fractional banking system”:

In a following tweet, he assured that “100% of USDC reserves are also safe and secure.” Adding to the assurance, he stated that the remaining SVB cash would be transferred to the corporate investment banking company the Bank of New York Mellon (BNY Mellon).

Additionally, he proclaimed that the process of minting could not be continued through Signature Bank’s digital payment network called SigNet, quoting:

With the closure of Signature bank announced tonight, we will not be able to process minting and redemption through SigNet, we will be relying on settlements through BNY Mellon.

Significantly, the CEO, affirmed that the company would introduce a new banking partner “with automated minting and redemption potentially as soon as tomorrow.”

Interestingly, he referred to the Payment Stablecoin Act, which according to him is necessary at the moment for a “truly safe financial system,” stating:

Indeed, the Payment Stablecoin Act, which remains a very active pursuit for Congress, would enshrine in law a regime where stablecoin funds would be held with cash at the Fed and short-term T-Bills. We need this law now more than ever if we want a truly safe financial system.

It is noteworthy that Allaire confirmed that his company would be committed to building a “robust and automated USDC settlement,” focusing on reserving operations with quality and transparency.

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