Circle prefers reserves and payment rails with the Fed, says exec
Circle prefers reserves and payment rails with the Fed, says exec
Stablecoin
Summary
Circle’s Asia-Pacific vice president said the company currently holds 80% of its reserves but would ultimately like to keep all cash with the Fed in light of the recent banking crisis.
Description
In the face of recent banking woes, Circle’s Asia-Pacific Vice President said the company is currently holding nearly 80% of its reserves, but would prefer to keep all funds with the Federal Reserve. In an interview with Cointelegraph, Circle’s Ash Egan said, “We’re looking for a future where all our liquidity and most of our reserves are held with the Federal Reserve.”
The company primarily uses the same payment rails as banks in order to facilitate transfers, including debit and credit card processing networks, as well as direct deposits. This allows Circle to securely store funds in the Federal Reserve.
Egan further stressed the importance of maintaining liquidity during banking crises, saying “It’s been a difficult time for the global banking system and a reminder of how important it is to have our liquidity and reserves stored in the best places. We believe that the Federal Reserve is the safest place to store our reserves and liquidity, and that all partners should do the same.”
Conclusion
Circle’s preference for the Federal Reserve to store their reserves during banking crises coincides with their globally accessible network of payment rails. The company’s commitment to security and stability ensures that customers’ funds are safe and secure, both in terms of the banking crisis and on their innovative platform.