Circle Favors Fed Reserves, Payment Rails Over Banks – Exec29. March 2023
• Circle is reflecting on recent events, and has a global banking partnership and 80% of its reserves.
• The company would ultimately like to keep all its cash with the Fed and use payment rails to the Fed for less reliance on TradFi partners.
• Singapore has been targeted due to the country’s favorable environment.
Circle Reflects on Recent Events
Circle’s Asia-Pacific vice president Raagulan Pathy said in an interview with Cointelegraph at WOW Summit Hong Kong that the company is reflecting on recent events and focused on having “more banking partnerships on a global basis.” After the SBV crash, Circle promptly announced a new banking partnership with Cross River and an expansion of its ties with BNY Mellon. Pathy said Circle currently holds 80% of its reserves and treasuries.
Circle Would Ultimately Like to Keep All Its Cash With the Fed
Pathy continued to say that they would ultimately like to keep all of their cash as well with the Fed and use the payment rails to the Fed, because that moves them away from their reliance on TradFi partners. He also commented on other countries’ regulatory regimes such as Singapore which he praised for having a “measured approach toward regulation.” According to Pathy, Singapore has a “step-by-step” approach to crypto which makes it increasingly attractive for companies in the space.
Circle Has Significant Presence in Singapore
Pathy highlighted Circle’s significant presence in Singapore and their recent acquisition in Taiwan. He said that as a company, they are looking at having more people on ground where there is a favorable environment for operating in cryptocurrency sector. This includes countries like Singapore who have regulatory regimes which are suitable for innovation within this industry.
Circle Was Subject To Discussion After USDC Depegging
Circle had been subject to discussion since depegging of USD Coin USDC $1 stablecoin amid collapse of Silicon Valley Bank (SVB) back March 10th this year. Now that USDC has regained 1:1 peg with U.S Dollar after clearing backlogs, Circle looks towards future — both theirs as well as industry’s — cautiously optimistic about progress being made in terms of stability within cryptocurrency markets worldwide..
U.S Regulatory Landscape Described As ‘Extremely Fluid’
Pathy said that there are no plans from moving headquarters which is currently based out of U.S., but also described U.S regulatory landscape as “extremely fluid”. However, he expressed his optimism by saying that there are positive signs being seen here too such as SEC approving Bitcoin ETF recently through VanEck SolidX Bitcoin Trust..