1 year ago
The issuers of the 2 largest stablecoins, Tether and Circle, person distanced themselves from the FTX situation, saying they person nary vulnerability to the struggling crypto speech or Alameda Research.
Tether distances self
Tether’s CTO Paolo Ardoino said successful effect to a Wu Blockchain tweet that the USDT issuer had nary vulnerability to FTX oregon Alameda.
To beryllium clear: #Tether does not person immoderate vulnerability to FTX oregon Alameda. 0. Null.
Maybe is clip to look elsewhere.
Sorry guys. Try again. https://t.co/1bRNUGrttr
— Paolo Ardoino 
(@paoloardoino) November 9, 2022
According to Ardoino, portion Alameda has issued and redeemed a batch of USDT successful the past, the stablecoin issuer has nary recognition vulnerability that has matured with the struggling crypto trading firm.
He added:
“Tether is issued and redeemed upon marketplace request by our customers.”
Circle besides has nary Alameda exposure
The co-founder and CEO of Circle, Jeremy Allaire, besides posted a thread to explicate the narration betwixt FTX and Circle to wide immoderate fears and uncertainty among marketplace players.
gm
1/ Lots of FUD accruing retired there, truthful different thread to assistance dispel the noise.
— Jeremy Allaire (@jerallaire) November 9, 2022
According to him, FTX has been a Circle Payments API lawsuit for 18 months, and Alameda has been utilizing Circle for galore years to make and redeem USDC.
“Circle has ne'er made loans to FTX oregon Alameda, has ne'er received FTT arsenic collateral, and has ne'er held a presumption successful oregon traded FTT. In immoderate case, Circle does not commercialized connected its ain account.”
He added that Circle has a small equity successful FTX, the aforesaid arsenic successful different exchanges, including Kraken, BinanceUS, and Coinbase, portion FTX besides has a small equity successful Circle.
In effect to the millions of USDC moved by Alameda Research to FTX successful the past fewer days, Allaire claimed that the transactions were successful enactment with the word of colony and “automated systems of 1:1 dollar colony to mint USDC and redeem USDC.”
He besides discussed the FUD astir Silvergate, saying that the slope is conscionable 1 of the much than 10 banks holding USDC currency reserves globally. Roughly 80% of Circle assets are successful U.S. 3 months oregon little US treasury bills and successful the custody of BNYM.
The station Tether, Circle contradict vulnerability to FTX, Alameda appeared archetypal connected CryptoSlate.
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