Jeremy Allaire, the esteemed computer entrepreneur and CEO of Circle, took to Twitter in the wee hours of March 13 to provide an update on the current status of the company’s USDC reserves and Silicon Valley Bank’s deposits. In light of the recent SVB debacle on March 10, Allaire reassured his followers that all deposits at the bank were secure and would be readily available for banking the next day. His professional and informative tone instills confidence in the company’s financial stability and commitment to transparency.
Allaire expressed his elation on Twitter, commending the US government and regulators for their pivotal efforts in mitigating risks stemming from the fractional banking system.
In a subsequent tweet, he confidently guaranteed that the USDC reserves were impregnable and unassailable. Furthermore, he affirmed that the residual SVB funds would be seamlessly transferred to the esteemed corporate investment banking institution, the Bank of New York Mellon (BNY Mellon).
Furthermore, he declared that producing currency could not be sustained via Signature Bank’s innovative payment platform, SigNet. He stated:
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.
The CEO announced the company’s plans to unveil a fresh banking partner with automated minting and redemption capabilities. This exciting development could come to fruition as early as tomorrow.
He referred to the Payment Stablecoin Act, emphasizing its crucial role in establishing a secure financial system.
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.
Allaire has confirmed that his company is dedicated to constructing a resilient and automated USDC settlement system, focusing on reserving operations and prioritizing quality and transparency. This commitment underscores the company’s unwavering dedication to providing a reliable and trustworthy service to its clients.
