US EditionCircle Examines Ways to Reverse Transactions to Counter Fraud, Disputes: FT
Circle tests reversible USDC transactions to enable refund-like payments and improve fraud recovery, aiming to boost institutional adoption and regulatory compliance, with a $74 billion market cap stablecoin.
- On Thursday, Circle said it is examining reversible transactions for USD Coin, Circle president Heath Tarbert told the Financial Times.
- Circle is pursuing reversibility to recover funds from fraud and hacks and protect USD Coin holders, seeking to bridge crypto with traditional finance by offering refund-style flexibility.
- Its Refund Protocol would escrow payments and let an authorized arbiter settle disputes only with parties' agreement, while the Arc testnet this fall will integrate with Fireblocks to serve banks and asset managers.
- The move could increase institutional adoption by allowing banks and treasury teams to handle fraud, with USDC's market cap over $74 billion and the sector totaling about $300 billion.
- Critics point to past freezes and recoveries such as the May 22 Cetus exploit where validators froze $162 million of over $220 million stolen, with Sui validators later approving returns.
21 Articles
21 Articles
Circle Considers Reversible USDC Transactions to Attract TradFi
Stablecoin issuer Circle is exploring ways to make transactions in its USDC token reversible in cases of fraud or disputes, the Financial Times reported. “We are thinking through … whether or not there’s the possibility of reversibility of transactions, right, but at the same time, we want settlement finality,” said Circle President Heath Tarbert. This story is an excerpt from the Unchained Daily newsletter. To get these updates in your email…
Circle Examines Ways to Reverse Transactions to Counter Fraud, Disputes: FT
Circle Internet, (CRCL) is examining ways of reversing transactions involving its stablecoin, USDC, the Financial Times (FT) reported on Thursday.The issuer of the second-largest stablecoin is "thinking through ... whether or not there's the possibility of reversibility of transactions," the company's president, Heath Tarbert, said in an interview with the newspaper.Stablecoins, tokens pegged to the value of a traditional financial (TradFi) asse…
Circle Proposes On-Chain Refunds Via Arc Blockchain
Circle, the company that issues the USD Coin (USDC) stablecoin, is working on a new way to add refund-style payments to its blockchain platform, Arc. This move is aimed at institutional users like banks and treasury teams. Its goal is to close the gap between the instant, unchangeable nature of blockchain transactions and the flexibility that traditional banking systems offer for dealing with fraud and disputes. Refunds Are Now Available on The …
FT: Circle’s Push for Reversible Transactions Rattles Crypto Purists
Circle’s proposal to enable reversible stablecoin transactions has triggered backlash, as critics argue it undermines blockchain’s foundational principle of immutability. The Push for Reversible Transactions Stablecoin issuer, Circle, has ignited controversy with its proposal to introduce reversible transactions—a concept that challenges one of the core tenets of blockchain technology: immutability. Circle president Heath Tarbert suggested […]
Circle evaluates to allow transactions with its stablecoin to be reversible, a measure that seeks to bring these assets closer to the traditional financial system, but that generates debate in the crypto community. *** Circle studies that transactions with USDC are reversible in cases of fraud or disputes. The measure seeks to align stablecoins with standards of the TradFi system. Reports and community warn about risks for immutability and trans…
Circle rarely freezes stolen funds but wants reversible transactions
Circle, the issuer of $74 billion stablecoin USDC, is mulling the introduction of reversible transactions, according to reporting from the Financial Times. The mechanism could allow for refunds “in cases of fraud or disputes” in a push “to become part of the financial mainstream.” The FT quotes Circle president Heath Tarbert as recognizing “an inherent tension there between being able to transfer something immediately, but having it be irrevocab…
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