USDC Assets to Be Disclosed in SEC Filings, Circle CEO Says

“Our intention is to include greater reserves transparency” as the stablecoin operator goes public via a SPAC deal, Jeremy Allaire told CoinDesk TV Friday.

AccessTimeIconJul 9, 2021 at 5:14 p.m. UTC
Updated Sep 14, 2021 at 1:23 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Circle CEO Jeremy Allaire reiterated his pledge to pull back the curtain a little more on the USDC stablecoin a day after he announced plans to take his company public.

“Stablecoins are a more powerful innovation than the closed-loop, wallet garden proprietary types of payment systems of the past,” Allaire said Friday on CoinDesk TV’s “First Mover." “They deserve a greater degree of transparency.”

In recent weeks, a growing number of observers have scrutinized the stablecoin sector over the lack of transparency and are calling for greater insight on the assets backing the digital tokens.

While most of the criticism has focused on Tether’s USDT, the largest stablecoin by market capitalization, its closest rival USDC, which Circle operates, has also been called out for the lack of detail in its monthly “attestations.”

Circle announced Thursday that it is going public via a merger with Concord Acquisition Corp.,  a special purpose acquisition company (SPAC), in a deal that values the payments infrastructure provider at $4.5 billion. The company projected a USDC circulation of $190 billion by 2023, seven times more than it is now.

When asked Friday why Circle hasn’t provided more information about USDC’s reserves, Allaire said the company has been involved in a complex process for months preparing the Concord transaction.

The parties are required by the U.S. Securities and Exchange Commission (SEC) to file a Form S-4 detailing the proposed merger, he noted, suggesting that more pertinent information would come soon.

“Our intention is to include greater reserves transparency there,” Allaire said.

SEC filings are “the appropriate venue and medium to publish and share that kind of information,” he said.

Bypassing SWIFT

Allaire also spoke about the possibility of stablecoins challenging the decades-old SWIFT messaging system as a medium of international transactions.

“Dollar digital currencies can transact globally without touching SWIFT and other currencies like bitcoin can transact globally without touching SWIFT,” he said, noting that electronic currency is an invention that goes beyond stablecoins and central bank digital currencies (CBDCs).

“Internet-native money is here, it is growing rapidly and will continue to grow and that’s something that the world has to adjust to,” he said.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.