Circle, the US-based payments company that issues the USD coin (USDC) stablecoin, has denied facing any kind of difficulty in maintaining the coin's PEG to the US dollar. Meanwhile, the supply of tether coins (USDT) on one of the most widely used stablecoin liquidity pools remains high. Circle denies rumors about USDC issues Writing in a Twitter thread on Saturday, Jeremy Allaire, CEO and co-founder of Circle, said the company has decided to increase its information-sharing efforts in light of the "fundamental challenges and risks" that many companies in the crypto industry have faced. In the thread, Allaire linked to a blog post titled "How to Be Stable," in which the company delved into details about USDC's support. Among the key points, the post stated that "USDC has always been supported by the equivalent value of ASSETS denominated in US dollars." He added that, "The USDC reserve is held entirely in cash and short-term U.S. government bonds, consisting of U.S. Treasuries with maturities of 3 months or less." Circle's CEO stated in his Twitter thread that it's "understandable why some users would be paranoid given the history of peddlers in cryptocurrencies." He also said he had observed "some obvious confusion" between USDC's reserves and the stablecoin itself. USDC reserves are "regulated" USDC's reserves are "regulated," Allaire said, explaining that this includes rules on which Circle assets it can hold as reserves and where they can be held. He also claimed that usdc itself is a stablecoin used in lending markets "away from Circle." "Circle is in the strongest position it has ever been in financially and we will continue to increase our transparency," the Circle CEO concluded in his thread. The thread came after some Twitter accounts in recent weeks shared rumors about Circle, claiming that the company is facing difficulties in maintaining USDC's US dollar peg.
In a statement in Cryptonews.com last week, a Circle spokesperson said the company's business remains "strong" and that Circle is committed to "building trust and providing full transparency." The spokesperson also referred to monthly audits of Circle's reserves by auditing firm Grant Thornton LLP for details on USDC's support. Tether's offering remains high on Curve Meanwhile, the world's most popular USDT stablecoin, issued by Tether, continues to be under pressure in the secondary market, Bloomberg reported Sunday. On the Curve (CRV) stablecoin swap protocol, the share of providing USDT in a liquidity pool for USDT, USDC and DAI still remains above the level of before the Earth's collapse (LUNA). USDT's high supply indicates some hesitation among traders in holding it, Edu Patel, CEO of cryptocurrency investment platform Mudrex, told Bloomberg. Tether denied that there is reason to doubt his reservations, while saying that some hedge funds are trying to profit from the spread of fear in the market. The company's chief technology officer Paolo Ardoino said on Twitter in June that Tether is following up on its commitment to "phase out exposure [commercial paper] and move to U.S. Treasuries [...]."