In brief

  • Circle’s CFO Jeremy Fox-Geen said the firm is a registered financial services company just like PayPal or Apple.
  • Circle Yield, the firm’s interest-earning product, is regulated by the Bermuda Monetary Authority (BMA).
  • Fox-Geen expects Circle to go public via a SPAC deal at the end of 2022.

Amid concerns that USDC would fall to similar liquidity issues as Terra’s stablecoin, Circle’s chief financial officer Jeremy Fox-Geen sat down with Decrypt to demystify how the market’s second-largest stablecoin operates.

Last week, Circle, the company behind the stablecoin, released its first monthly full breakdown of the assets backing the token.

The stablecoin provider highlighted that its USDC reserve is now held exclusively in cash and three-month U.S. Treasury bonds and is wholly separate from the firm’s operations.

Per the firm’s report, the total amount of USDC in circulation as of June 30 was 55,569,519,982 tokens, while reserve assets backing the U.S. dollar-pegged coin totaled $55.7 billion.

Of this amount, Circle had $13.58 billion in cash at regulated U.S. banks, such as Silvergate Bank, Bank of New York Mellon, and Silicon Valley Bank, among others. Another $42.1 billion is currently held in treasury bonds.

The disclosure came a little over a week after the firm’s CEO Jeremy Allaire hit back at rumors that USDC would go the way of Terra, stating that financially the Boston-based company “is in the strongest position it has ever been.”

This is what Fox-Geen affirmed with Decrypt, pointing out that Circle is a U.S. registered financial services company…

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