The issuers of the 2 largest stablecoins, Tether and Circle, have distanced themselves from the FTX scenario, saying they haven’t any publicity to the struggling crypto trade or Alameda Analysis.
Tether distances self
Tether’s CTO Paolo Ardoino stated in response to a Wu Blockchain tweet that the USDT issuer had no publicity to FTX or Alameda.
To be clear: #Tether doesn’t have any publicity to FTX or Alameda. 0. Null.
Possibly is time to look elsewhere.
Sorry guys. Attempt once more. https://t.co/1bRNUGrttr— Paolo Ardoino 🍐 (@paoloardoino) November 9, 2022
In keeping with Ardoino, whereas Alameda has issued and redeemed plenty of USDT previously, the stablecoin issuer has no credit score publicity that has matured with the struggling crypto buying and selling agency.
He added:
“Tether is issued and redeemed upon market demand by our prospects.”
Circle additionally has no Alameda publicity
The co-founder and CEO of Circle, Jeremy Allaire, additionally posted a thread to clarify the connection between FTX and Circle to clear any fears and uncertainty amongst market gamers.
gm
1/ Plenty of FUD accruing on the market, so one other thread to assist dispel the noise.
— Jeremy Allaire (@jerallaire) November 9, 2022
In keeping with him, FTX has been a Circle Funds API buyer for 18 months, and Alameda has been utilizing Circle for a few years to create and redeem USDC.
“Circle has by no means made loans to FTX or Alameda, has by no means obtained FTT as collateral, and has by no means held a place in or traded FTT. In any case, Circle doesn’t commerce by itself account.”
He added that Circle has slightly fairness in FTX, the identical as in different exchanges, together with Kraken, BinanceUS, and Coinbase, whereas FTX additionally has slightly fairness in Circle.
In response to the tens of millions of USDC moved by Alameda Analysis to FTX previously few days, Allaire claimed that the transactions have been consistent with the time period of settlement and “automated methods of 1:1 greenback settlement to mint USDC and redeem USDC.”
He additionally mentioned the FUD about Silvergate, saying that the financial institution is simply one of many greater than ten banks holding USDC money reserves globally. Roughly 80% of Circle belongings are in U.S. 3 months or much less US treasury payments and within the custody of BNYM.
