Stablecoin Issuer Circle Plays Down FTX, Alameda Exposure

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Stablecoin Issuer Circle Plays Down FTX, Alameda Exposure
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.circle CEO jerallaire played down the stablecoin issuer's exposure to FTX_Official and AlamedaResearch amid concerns surrounding FTX's investments in other crypto firms, like Circle. By parikshitm899

Circle, the firm behind stablecoin USDC, played down its exposure to crypto exchange FTX and trading firm Alameda Research, as the crypto market grapples with the fallout from FTX's fall from grace.

Circle CEO Jeremy Allaire took to Twitter to explain the firm's relation with FTX and Alameda. Allaire said that Circle has never given loans to FTX or Alameda and has never received FTT as collateral. Allaire added that both Circle and FTX hold only a small portion of equity in each other. The response comes after FTX announced that it has agreed to sell itself to rival Binance in a last ditch effort to save the exchange from collapse. This raised questions around the state ofa $440 million financing round in 2021, which involved several investors, including FTX.

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