Notwithstanding the fact that the cryptocurrency sector is laying off people, USDC issuer Circle, which had over 900 employees as of the end of last year, aims to boost employment from 15% to 25% by 2023.

Chief Financial Officer Jeremy Fox-Geen has stated that Circle plans to boost its employment by 25% this year.

The Boston-based crypto company that was an issuer of the previous USD Coin stablecoin (USDC) had roughly 900 employees at the end of last year and by 2023. They should increase from 15% to 25%. 25%, or an additional 135 to 225 workers. That is a slower pace of growth than in 2022, when the population per capita will nearly double from 2021.

The Circle continues to hire even though many cryptocurrency businesses are terminating workers. After two Terra-LUNA shocks in May, several people filed for bankruptcy amid a challenging period for the cryptocurrency industry. Things only got worse when Sam Bankman-FTX Fried's crypto empire quickly collapsed. The real estate investment trust Safehold Inc. announced that Mr. Fox-Geen left for Circle in 2021.

“We are growing and investing, and we are fortunate to be financially able to sustain our investments (…). We have experienced down growth prudently and are focused on what matters most.”

There is increasing regulatory scrutiny on cryptocurrency trading firms as regulatory bodies like the SEC and CFTC take significant steps towards establishing a regulatory framework for cryptocurrencies, with a particular focus on stablecoins.

In the quarter ending September 30, Circle reported a revenue and interest income of $274 million, along with a net income of $43 million. In the first quarter of the year, the company had a revenue and interest income of $19.6 million, but suffered a net loss of $138.7 million.

#crypto2023 #layoffs #Stablecoins #circle

A stable U.S. banking system where deposits are safe and accessible is essential to the global financial system and to the operations of every fiat-backed stablecoin.

That was recognized by the U.S. government’s actions on Sunday, March 12, when the U.S. Treasury, Federal Reserve and the FDIC together stepped in to ensure that ordinary depositors were not harmed by the failures of Silicon Valley Bank and Signature Bank.

Since the failures of Signature Bank and Silvergate Bank, our core transaction banking partners, our teams have been working around the clock to restore USDC liquidity operations, including bringing on new transaction banking partners. We began processing minting and redemption requests on Monday morning, March 13, when the U.S. banking system re-opened, and are currently working through the backlog. We have more to do here, including adding new transaction banking partners with 24/7/365 capability, and we will keep our community posted on our progress.

Yesterday, March 13, Circle has redeemed $2.9B USDC and minted $0.7B USDC.

Moreover, as part of our ongoing initiatives to strengthen the USDC reserve, we now hold the cash portion of the reserve at BNY Mellon, except for limited funds held at transaction banking partners in support of USDC minting and redemption. The majority of the reserve is invested in the Circle Reserve Fund, managed by BlackRock and custodied at BNYM, which is principally comprised of short dated U.S. Treasuries.

#BTC #usdc #circle #SVB #CryptoFearandGreed

On March 15, 2023, Circle announced that they have cleared most of the backlog of minting and redemption requests for USDC (USD Coin), a stablecoin pegged to the US dollar. This update comes after a challenging week for the company, during which the events impacted the liquidity operations for USDC.

According to the press release, since Monday morning, Circle has redeemed $3.8 billion USDC and minted $0.8 billion USDC. The company has been working tirelessly to re-initiate services with alternative banking partners, especially payment and USDC redemption services, and they thank their customers for their patience during these unprecedented times.

On Tuesday, March 14, Circle went live with a new transaction banking partner for domestic U.S. wires in and out. Today, the company went live with that same partner for international wires to and from 19 countries.

Additionally, they went live with an existing transaction banking partner for international wires, and they expect to bring more capabilities back online soon. The company thanks all the teams that have worked tirelessly around the clock with incredible professionalism to stand up these new services at unprecedented speed. They also state that they will continue their efforts to add additional transaction banking partners.

USDC is one of the most popular stablecoins, and its liquidity operations are crucial for the digital currency industry. Stablecoins, unlike other cryptocurrencies, are pegged to a real-world asset, such as a national currency, to reduce volatility. USDC is pegged to the US dollar, which means that it should maintain a stable value of one dollar per USDC token. Circle’s update on USDC operations is good news for the digital currency industry as it ensures the liquidity and stability of USDC.

In conclusion, Circle’s announcement that they have cleared substantially all of the backlog of minting and redemption requests for USDC is a positive development for the digital currency industry. The company’s efforts to re-initiate services with alternative banking partners and add additional transaction banking partners are a testament to their commitment to providing stable and reliable digital currency services. As the digital currency industry continues to grow and evolve, stablecoins like USDC will play a crucial role in facilitating transactions and reducing volatility.

#circle #USDC #USDCSTABLECOIN #Stablecoins

This article was republished from azcoinnews.com

Circle Connection to SVB Revealed

The entire banking sector was filled with concern over the past few days, as Silicon Valley Bank found itself in financial turmoil. Subsequently, needing an influx of capital, and considering a potential sale, it was revealed that California regulators have closed hte bank.

Now, the crypto industry has seen one of its strongest entities connected to the now-closed institutions. Specifically, stablecoin issuer Circle held an undisclosed amount of cash in Silicon Valley Bank. Moreover, the development was made in a USDC Reserve Report that listed the financial institutions that custody the cash for the platform.

Among SVB, Circle also listed financial institutions like Silvergate Bank and the Bank of New York Mellon. Additionally, the blockchain company has not yet commented on the subsequent closing, nor the amount of capital kept at the bank. Ultimately the report is dated March 2nd, 2023, just days prior to the bank’s eventual closing

https://watcher.guru/news/circle-usdc-held-undisclosed-amount-of-cash-in-silicon-valley-bank?

#circle #crypto2023

Stablecoin issuer Circle Internet Financial said Monday the US$3.3 billion in USD Coin (USDC) reserve deposits held at the failed Silicon Valley Bank will be fully recovered when banks open on Monday in the U.S., reflecting a statement from financial authorities.

The US$3.3 billion accounts for about 8% of the total USDC reserve, Circle said in a statement, adding that it held no cash reserves at Signature Bank, which was also taken over at the weekend by the Federal Deposit Insurance Corporation. 

Circle also announced its new partnership with New Jersey-based Cross River Bank, through which automated USDC minting and redemption for customers will take place starting Monday, March 13, 2023.

Circle’s USDC stablecoin broke its dollar peg over the weekend after it revealed its reserves at Silicon Valley Bank, falling as low as US$0.8774. It has since recovered to US$0.9939 as of Monday afternoon in Asia.

Silicon Valley Bank (SVB) and Signature Bank, two key lenders to the crypto industry, were shut down and taken over by U.S. regulators to prevent a systemic threat to the broader banking industry. SVB, which held more than US$200 billion in assets, is the largest banking failure since the 2008 financial crisis. 

USDC is currently the fifth largest cryptocurrency and the second largest stablecoin on CoinMarketCap, with over US$40 billion in market capitalization.

#circle #usdc #Stablecoins #koinmilyoner #blockchain

CEO Jeremy Allaire confirms that Circle has been "able to access" its $3.3 billion of funds held with the collapsed Silicon Valley Bank.

The temporarily locked funds significantly affected USDC, causing it to lose market share in favor of rival USDT.

The stablecoin's dollar peg has since recovered, but mass redemptions of USDC have resulted in the market cap of the stablecoin dropping.

Circle CEO and co-founder Jeremy Allaire has revealed being able to access the $3.3 billion held at collapsed Silicon Valley Bank (SVB). In a video with Bloomberg Markets on March 14, the stablecoin issuer's executive said that he believed that "if not everything, very close to everything, was able to clear" from the collapsed lender on March 13.

Circle's USDC depeg on SVB woes

Following the news that SVB had collapsed with $3.3 billion of Circle's cash trapped, the company's stablecoin USD Coin (USDC) briefly de-pegged from the dollar. Consequently, cryptocurrency whales registered severe losses and embarked on a series of capital flights to protect their remaining assets.

In a Twitter post, crypto exchange Huobi Global's co-founder Du Jun said: 

[I] dodged LUNA, dodged 3AC, even dodged FTX [and their collapse], but I couldn't avoid Silvergate, nor SVB and USDC. Asked a few crypto veterans; losses amounted to >$1 billion in stock and deposits, myself included. I'm very upset, and it's time to cut down on my budget.

However, the stablecoin has restored its dollar peg, although mass redemptions have caused a significant drop in USDC's market capitalization. Based on CoinMarketCap data, the USDC market cap is down almost 10% since March 11 and around 3% in the last 24 hours to $38.39 billion.

Tether market cap soars as network mints $2 billion USDT

Meanwhile, USDC industry rival Tether (USDT) has recorded a notable increase in market cap in the last 24 hourse, recording a 1% gain to $73.03 billion. This comes after the network minted $2 billion USDT tokens anticipating future demand.

The minting took place on Ethereum and TRON blockchains on March 15, catapulting Tether’s market cap 3.5% from $72.1 billion to $74.6 billion between March 12 and March 14. The network’s market capitalization leaped $7 billion since the onset of 2023, rising from $66 billion.

Tether’s CTO Paolo Ardoino has clariefied the purpose for minting, saying the amount would serve as “inventory for next period issuance requests and chain swaps.”

Based on the above representations, USDC was affected by the brief lock-up of funds at SVB. According to the January reserve report released on March 2, the $3.3 billion was barely 8% of the stablecoin's reserves. Nevertheless, the situation cost USDC its market share to an industry competitor.

The report assured that USDC was 100% collateralized, with more than 80% of the reserve comprising short-dated US Treasury Bills.

Because of the recent catastrophes in the crypto and financial playing fields, highly liquid assets with direct obligations of the US government have passed as the safest investments worldwide.

#circle #usdc #BTC #BNB #koinmilyoner

Circle is a fintech company that was founded in 2013 in the United States. The company's main product is the Circle Pay payment system, which allows sending and receiving money through a mobile app.

One of the key advantages of Circle Pay is the ability to make instant transfers between users anywhere in the world. You can also use cryptocurrencies, including bitcoin, in the app to send and receive payments.

Circle also offers other financial products, including Circle Invest, a cryptocurrency investing app, Circle Trade, a trading platform for large investors, and crypto wallets such as Circle Bitcoin Wallet and Circle Ethereum Wallet.

In 2018, Circle acquired Poloniex, one of the largest cryptocurrency exchanges in the world. After that, Circle began to actively develop its ecosystem, adding new products and services for users.

Overall, Circle is one of the leading fintech and cryptocurrency companies, offering a wide range of products and services for users.

How is circle related to usdc?

Circle is also one of the founders and participants in the Centre Consortium project, which created the stable USDC (USD Coin) coin. USDC is a cryptocurrency whose price is tied to the price of the U.S. dollar. That is, each USDC is in circulation on the Ethereum blockchain and is backed by a reserve in U.S. dollars in bank accounts, making it stable and predictable.

Circle issues and manages USDC, providing regular audits and support for price stability. USDC has received wide support in the cryptocurrency industry and is used in a variety of applications, including payment for goods and services, trading on cryptocurrency exchanges and transfers between countries.

In addition, Circle uses USDC in its products and services, such as Circle Pay, Circle Invest and Circle Trade, making cryptocurrency use easier and reducing volatility risks. Overall, Circle's connection to USDC is an important factor for its success in fintech and cryptocurrencies.

What is the USDC secured by?

USDC (USD Coin) is a stable coin whose price is pegged to the price of the US dollar. This means that each USDC is in circulation on the Ethereum blockchain and is backed by a reserve in U.S. dollars in bank accounts.

To secure the USDC, Circle, along with other Centre Consortium members, maintains a dollar reserve that must be equal to the number of USDCs in circulation. That is, if there are 100,000 USDCs in circulation, the reserve must be at least $100,000.

The USDC reserve is held in bank accounts in various countries, and each reserve account is audited regularly. Centre Consortium also publishes a monthly reserve fund report and audit reports to ensure transparency.

In addition, Circle states that it regularly works with regulators to ensure that its products and services comply with laws and regulations. As such, the USDC is backed by a reserve fund in U.S. dollars that is held in bank accounts and subject to regular audits, making it stable and predictable.

In which banks do you keep your funds?

Circle, as a member of the Centre Consortium, maintains a reserve in U.S. dollars to ensure the stability of the USDC coin. The reserve is held in bank accounts in various countries and is regularly audited to ensure transparency and regulatory compliance.

Circle does not disclose a list of all banks that hold reserves in order to reduce security risks and prevent potential attacks or hacks. However, they claim to work with a number of banks that have high security standards and reputations in the marketplace.

In addition, Circle states that they work with regulators to ensure that their products and services comply with laws and regulations. Thus, holding reserves at trusted banks and complying with regulatory requirements are priorities for Circle in ensuring the stability of the USDC.

#circle

Circle Internet Financial’s USDC, the second-largest stablecoin by market capitalization, lost and then regained parity to the U.S. dollar after regulators took over the failed Silicon Valley Bank and guaranteed deposits, including Circle’s, to prevent a broader run on the banking industry.

USDC was trading at US$0.9948 at 9:30 a.m. in Hong Kong on Monday, after falling to as low as US$0.8774 on Saturday, according to data from CoinMarketCap. Circle held about US$3.3 billion in USDC reserve deposits at Silicon Valley Bank, known as SVB.

Cryptocurrencies also bounced back from losses last week, with Bitcoin jumping almost 10% in early trading in Asia, after the Federal Deposit Insurance Corporation (FDIC) – a government body set up after the 1930s Great Depression to provide deposit insurance at savings and commercial banks – said on Sunday that it has taken over SVB.

The move to backstop SVB, which had total deposits of more than US$175 billion, went all the way up to the White House and President Joe Biden for approval at the weekend, according to a joint statement by the Treasury, the Federal Reserve and the FDIC, indicating the seriousness with which U.S. regulators took the threat of bank failures spreading.

The fall of SVB followed the earlier collapse of another California-based and crypto-linked bank Silvergate Capital last week. The FDIC said Sunday it has also taken control of New York-based Signature Bank, one of the biggest lenders in the crypto industry, due to banking industry risk.

“Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer,” the joint official statement said.

“We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority. All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer.”

Circle

Jeremy Allaire, Co-founder and CEO of Circle, said in a statement dated March 12 in Boston, U.S.: “We are heartened to see the U.S. government and financial regulators take crucial steps to mitigate risks extending from the banking system.” 

Allaire said the US$3.3 billion in USDC reserve deposits held at Silicon Valley Bank “will be fully available when U.S. banks open tomorrow morning. No USDC cash reserves were held at Signature Bank. As a regulated payment token, USDC remains redeemable 1:1 with the U.S. Dollar.”

FDIC data shows SVB had about US$209 billion in total assets at the end of last year, making it the biggest bank failure in the U.S. since the 2008 financial crisis that included the collapse of Lehman Brothers, a 158-year old investment bank that is the largest bankruptcy in U.S. history with more than US$600 billion in liabilities.

The FDIC in its Sunday statement said all insured depositors at SVB will have full access to their insured deposits no later than Monday morning in the U.S. and that the FDIC will pay uninsured depositors an advance dividend within the next week.

“As the FDIC sells the assets of Silicon Valley Bank, future dividend payments may be made to uninsured depositors,” the federal agency said.

Crypto link?

New York-based Signature Bank was closed down on Sunday by its state chartering authority, with the FDIC appointed as receiver. At the end of last year, Signature Bank held total assets of around US$110.36 billion with US$88.59 billion in deposits, according to the FDIC.

Crypto exchange Coinbase tweeted on Monday morning in Asia that the firm had about US$240 million in corporate cash at Signature as of Friday, and it is currently facilitating all client cash transactions with other banking partners.

The U.S. bank failures could be seen as contagion from the crypto industry, but “the collapses of Silvergate and SVB didn’t appear to have direct links with cryptocurrency,” Winston Hsiao, co-founder and chief revenue officer of Taipei-based fiat-crypto exchange XREX, wrote on Sunday in a Facebook post.

“Crypto firms are actually victims just like many corporates and individuals that deposited at the two banks,” he said.

#circle #Stablecoins #bank #koinmilyoner #Bullish

The issuer of the second most capitalized stablecoin USDC refused U.S. Treasury securities maturing after May 31

Circle has refused to back its reserves with U.S. Treasury securities maturing after May 31 because of concerns. Also Circle CEO Jeremy Allaire told Politico that the government could default on its debt. Stablecoin issuer USD Coin (USDC) has adjusted its provisioning in favor of short-term Treasury securities.

According to U.S. Treasury Secretary Janet Yellen, U.S. authorities may run out of cash to make payments by June 1. Because the national debt limit of $31.4 trillion is already exceeded. If the issue with the limit of the national debt will not be solved. Then the U.S. could face a debt default.

“We don’t want to bear the investment risk that could materialize if the U.S. government suddenly can’t pay its debts,” Allaire said.

Circle’s USDC is the second-largest Stablecoin by market capitalization. There are about 30.1 billion tokens in circulation. Data from the Circle Reserve Fund, which is managed by BlackRock,. And they show that the company does not hold U.S. government debt securities maturing later than May 31.

Our experts note that the issuer of the largest USDT stablecoin by capitalization, Tether, has invested most of its reserves in U.S. government debt securities. About 85% of all its reserves are held as liquid assets. And money in bank accounts, cash equivalents and other short-term instruments, among which U.S. Treasury bills occupy 76.5%.

#usdc #circle #crypto2023 #cryptotrading #cryptonews