1 year ago
Jeremy Allaire, Circle CEO, confirmed that USD Coin (USDC) saw much redemptions than issuance implicit the past month, according to an Aug. 7 tweet.
Allaire stated that Circle issued $5 cardinal worthy of USDC implicit the past month, with redemptions surpassing issuances by $1.6 billion, totaling $6.6 billion. He said the precocious redemptions were a testament to the firm’s liquidity contempt caller assemblage concerns astir its books and reserves.
Allaire explained that the stablecoin issuer’s planetary banking and liquidity web was expanding. He added:
“We’re moving with exceptional and high-quality banks successful large regions astir the world, to bring section colony rails and globally distributed mint/burn to USDC.”
USDC has faced accrued scrutiny implicit its reserves and liquidity aft it was revealed that it was exposed to the failed Silicon Valley Bank (SVB) successful March. Since then, the stablecoin has seen its marketplace dominance drop to 21%, with its proviso falling to astir $26 billion, according to CryptoSlate’s data.
70% of USDC adoption is abroad
Despite its declining marketplace share, Allaire noted that 70% of USDC adoption was from abroad, dousing insinuations that the institution was “all astir the U.S.”
According to Allaire, the stablecoin’s adoption was coming majorly from emerging and processing markets crossed Asia, Latin America, and Africa.
Circle has yet to respond to CryptoSlate’s petition for further remark connected its adoption crossed these markets.
Welcomes PayPal foray into stablecoins
The Circle CEO besides hailed PayPal’s entranceway into the stablecoin arsenic grounds of what could hap if much regulations were introduced. He said:
“This is what happens erstwhile we commencement to get regulatory clarity, and with the Payment Stablecoin Act, this tin unfastened up a escaped and competitory marketplace for dollar stablecoin issuers with beardown supervision, allowing the US to vie with integer dollars that are uniformly safe, transparent, liquid and supervised to Fed-standards.”
Allaire further pointed retired that the accomplishment of stablecoin laws crossed antithetic jurisdictions would let customers to cognize who they are dealing with, adding that firms that tin past scrutiny by cardinal banks and prudential regulators volition thrive.
The station Circle CEO addresses USDC liquidity concerns, welcomes PayPal determination into stablecoins appeared archetypal connected CryptoSlate.
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