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Circle CEO Says Freeze-and-Seize Tools Give Stablecoins an Edge Over Correspondent Banking
Circle CEO Jeremy Allaire says stablecoin freeze tools outdo banks after the $6.3 billion Binance hack, but gaps remain.
Dextape brief
Circle chief executive Jeremy Allaire told CNBC that the stablecoin tech stack allows freezing and seizing of funds, a power traditional cross-border bank networks lack. His remarks followed a hack at Binance that drained roughly $6.3 billion. Circle has reportedly frozen over $1.1 billion in USDC since the October 29 attack, though Elliptic estimates about $3.24 billion of stolen crypto remains in linked wallets. Circle depends on Binance as a core distribution channel for USDC, and the exchange also bought $100 million of Circle shares. Allaire said deposits are returning, yet Reuters reported $4.72 billion in net withdrawals through Monday, a figure Binance confirmed. Allaire also expects the breach to influence future regulation, and Custodia Bank CEO Caitlin Long anticipates US regulators pushing for built-in freeze rules.
Why it matters: The debate over issuer freeze powers is now tied to a major exchange breach, which could shape how regulators treat stablecoin issuers and their control over funds.
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Terms in this story
- Stablecoin
- A token designed to track a reference value, usually the US dollar, through reserves, crypto collateral or an algorithm.
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