According to TechFlow, Circle CEO Jeremy Allaire said:
1. Circle has no significant exposure to FTX and Alameda. FTX has been a client of Circle’s Payment API for the past 18 months, providing card and ACH services for customer transfers. Circle’s crypto payments beta product uses FTX and other exchanges to provide BTC/ETH liquidity.
2. Alameda has been a Circle customer for many years, using Circle’s USDC service to create and redeem USDC. They have exactly the same products and the same terms of use as all of Circle’s institutional customers.
3. Circle has never loaned money to FTX or Alameda, never received FTT as collateral, and never held or traded FTT. In any case, Circle will not trade on its own.
4. Circle is a small shareholder in FTX, and FTX is a small shareholder in Circle. Circle is also a small shareholder in Kraken, Coinbase, and BinanceUS.
5. All USDC flows from Circle to FTX or Alameda respond to Circle’s ToS and an automated system of 1:1 USD settlement to mint USDC and redeem USDC.
6. There is also a lot of misinformation about the risks of Silvergate and USDC. Silvergate is one of more than 10 banks that Circle works with around the world. 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 the form of US Treasury bills of $3 million or less and are kept by BNYM. The remaining cash reserves are held in completely independent accounts in 7-8 banks for the convenience of USDC holders. Original link
