The collapse of FTX has caused uncertainty for people, businesses and the entire digital asset ecosystem. Read our response to this devastating event.
Circle has had no material exposure to FTX, Alameda or any of its affiliates. Our customer response focuses on continued safety and security.
The sudden collapse of FTX triggered a series of events over the past week that have caused pain and uncertainty for people, businesses and the entire digital asset ecosystem. As a valued Circle partner, we take your trust in us seriously. Your safety and security are our top priorities. We want you to know that Circle has no material exposure to FTX, Alameda or any of its affiliates.
We are taking every precaution to protect our customers from risks stemming from this week’s events. This includes preventing all Circle Account customers from transacting with known FTX systems and continuing conversations with policymakers and regulators to hold crypto to a higher standard.
Despite this period of uncertainty, Circle is in a strong position financially. As we are currently in the registration process to become a public company, we publicly file our financial statements - including our fiscal year audited financial statements - with the Securities and Exchange Commission. As such, we hold ourselves to both our own very high standards of financial, security, operational and compliance controls as well as those required of other U.S. regulated financial institutions.
The turbulence of last week underscores the value of Circle’s regulated, fully-reserved and transparent approach, which has helped maintain USDC’s stability in the most difficult market conditions. You may learn more about that from an interview we did last week with Bloomberg TV Asia.
USDC is always redeemable 1:1 for U.S. dollars at any time, providing a safe haven during times of market stress. We continue to strengthen the safety and transparency of USDC, as evidenced by the recently announced Circle Reserve Fund. Managed by BlackRock, the Fund is an SEC-regulated reserve fund held in custody by Bank of New York Mellon and enables daily transparency and third-party validation over the short-dated U.S. Treasuries that are held in reserve for USDC.
This is a difficult time, but we are here for you. Please contact us at [email protected] if you have any questions. Thank you for the trust you place in us.
Sincerely,
Elisabeth Carpenter
Chief Operating Officer
