Circle Raises Red Flag For Consumer Accounts, Tether May Grab With Minimum Limit

Circle’s loss may prove to be Tether’s gain as the former ceased support for stablecoin USDC. Separately, Tether accounted for its highest cash reserves.

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Read Next: Global Banking Agency Has A Warning For Stablecoins

Circle Stops Support For Consumer Mint Accounts: Stablecoin USDC issuer Circle announced it will discontinue support for consumer Circle Mint accounts and no longer create new accounts for individual retail consumers, as disclosed on its website. Consumer accounts with zero balances will be closed on Nov. 30.

The company notified consumers of its decision and indicated that account closures do not apply to business or institutional Circle Mint accounts.

Read Next: Circle Partners With BitoGroup, Taiwan FamilyMart: Convert Loyalty Points To USDC Coin

The move leads users, who mint Circle stablecoins like USDC and EURC, to other platforms. Tether will support individual consumer accounts but with a minimum limit of $100,000, as reported by The Block. Both individuals and corporate customers will be allowed for issuances and redemptions on the platform.

Tether’s Highest Cash Reserves: Based on data from The Block’s Data Dashboard, Tether remained the largest stablecoin issuer with a total supply of around $91 billion for its USDT token, while Circle followed with a total supply of about $27 billion for USDC.

Separately, Tether’s third-quarter attestation report showed cash and equivalents accounted for 85.7% of its total reserves making it the highest ever. It mainly consisted of U.S. T-Bills, consisting of $72.6 billion in both direct and indirect exposure. It also holds $1.7 billion worth of Bitcoin, gold worth $3.1 billion and excess reserves of $3.2 billion.

The Block’s Data Dashboard indicated that as of Oct. 30, Tether’s USDT stablecoin accounts for 68.4% of the total stablecoin supply at $91.1 billion.

USDC witnessed shaky ground as Circle in March 2023 announced that it had more than $3 billion worth of its reserves sitting in accounts at Silicon Valley Bank.

Benzinga’s Future of Digital Assets conference is scheduled in New York on Nov.14. Attend and learn more about stablecoins and how they are om popularity among consumers. The gathering is seen as pivotal for the digital assets community. The event will spotlight the latest trends, innovations, and challenges in the digital asset realm. 

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