USD Coin (USDC) stablecoin co-issuer Circle will go public in the fourth quarter of 2022. This was confirmed by her CFO Jeremy Fox-Gene in an interview with Decrypt.
The top manager said that the reverse merger with SPAC Concord Acquisition Corp would occur regardless of market conditions. In February, Circle was valued at $9 billion as an updated deal.
Fox-Gene acknowledged the grounds for community concern about the firm’s resilience amid the collapse of Terra and the string of hardships some industry participants were facing.
The top manager assured that the issuer himself could not directly interact with problem players since the law “unequivocally requires that USDC reserves be stored only in a certain set of instruments.”
“We are not allowed to lend in them [stablecoins], borrow on collateral or use them to pay bills. The collateral is held in segregated accounts in accordance with the Law on Money Transfers. A similar regulatory framework applies to PayPal, Venmo, Block’s Cash App, or Apple’s Apple Pay product. It protects hundreds of tens, if not hundreds of millions of individuals with billions of dollars,” Fox-Gene said.
He explained that the US Bankruptcy Code provides the USDC reserve fund with all available remedies.
The CFO Circle said it was unaware of companies asking for loans from the stablecoin issuer. The executive added that any such arrangement is required by law to be disclosed in public SEC filings.
Fox-Gene also touched on the Circle Yield product. Against pressure from regulators on players who offered such instruments, the firm registered its offer with the Bermuda Monetary Authority.
According to him, Circle Yield is over-collateralized in bitcoin, and its valuation process happens twice a day, seven times a week, which has avoided problems in recent months. The “perfect performance” of risk management did not result in losses for clients, Fox-Gene added.
On July 18, board member and director of the Center consortium, Dante Disparte, presented 19 principles for regulating stablecoins. The initiative has become part of the firm’s efforts to form the regulatory framework for the operation of “stablecoins”.
The principles include but are not limited to non-bank issuance, coexistence with CBDCs, confidentiality, transparency, and disclosure.
Recall that Circle presented the first monthly report on USDC collateral and promised to transfer its publication daily.
In April 2022, Circle CEO Jeremy Allaire stated that the company was preparing to apply for a U.S. cryptocurrency bank license. According to him, this should happen “shortly.”
