Circle favors Fed reserves and payment rails, according to an executive


Since depegging its USD Coin stablecoin in the wake of Silicon Valley Bank’s (SVB) collapse on March 10, Circle has been a topic of discussion in the cryptocurrency industry.

In an interview with Cointelegraph at WOW Summit Hong Kong, Circle’s Asia-Pacific vice president Raagulan Pathy stated that the company reflected on recent events and focused on establishing “more global banking partnerships.”

“There are currently no intentions to shift reserves. We have a very robust fund for where the reserves are located. We devoted a great deal of time establishing transparency and establishing that.”

Circle promptly revealed a new banking partnership with Cross River and an expansion of its connections with BNY Mellon following the SBV collapse. Pathy stated that Circle currently retains 80% of its reserves and treasuries.

Pathy continued by stating that the company has no intentions to relocate its headquarters, which is presently located in the United States, and described the regulatory environment in the United States as “extremely fluid.”

Nevertheless, he remarked on the regulatory treatments of other nations, such as Singapore, which he praised for its “measured approach to regulation.” According to Pathy, Singapore has a “step-by-step” approach to cryptocurrencies.

Pathy also emphasized Circle’s extensive presence in Singapore and recent acquisition in Taiwan. Companies in this industry have targeted Singapore as a crypto-friendly destination in terms of regulation and innovation prospects. In contrast, the United States has been clamping down on the cryptocurrency industry.

Recently, a commentator described the actions of U.S. regulators as a “surgical removal” of cryptocurrencies. Many in the industry believe that the United States demanding enforcement of crypto-industry regulations allows other nations to fill the void and foster a more “vibrant” scene.

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