The industry-leading stablecoin issuers Tether and Circle have denied having exposure to FTX (FTT) and Alameda Research, a crypto trading firm closely associated with the troubled exchange.
Jeremy Allaire, co-founder and CEO of Circle, the company behind the second largest stablecoin, USDC, said that while both FTX and Alameda have been Circle’s customers for years, the firm has “material exposure” to neither of them.
“Circle has never made loans to FTX or Alameda and has never received FTT as collateral. And has never held a position in or traded FTT. In any case, Circle does not trade on its own account,” he said.
However, Allaire admitted that Circle has a small holding in FTX equity, among other centralized exchanges.
“Circle is a tiny equity holder of FTX, and FTX is a tiny equity holder of Circle. Circle is also a tiny equity holder of Kraken, Coinbase and BinanceUS,” he added.
According to Allaire, both…
