Circle Yield pauses new loans after repaying customers

12/02 01:13

According to BlockWorks, the yield product of crypto payments tech company Circle has halted new loans just weeks after the company reduced its yield to zero as contagion of FTX’s failure spread. Circle Yield is not accepting new loans after repaying its customers, a company spokesperson told Blockworks Thursday. The move comes after the bankruptcy of crypto exchange FTX, which preceded digital currency prime broker Genesis pausing customer redemptions and new loan originations within its lending division. Circle and Genesis parent Digital Currency Group signed a $25 million deal in 2020, aimed at accelerating global adoption of USDC in mainstream finance. As part of the strategic partnership, Genesis was set to help Circle add new USDC yield and lending services. “Circle has repaid all outstanding customer loans, returning full principal plus interest due to all Circle Yield customers,” a Circle representative said in an email Thursday. “Circle Yield has no remaining loans outstanding to Genesis.”
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