The New York Federal Reserve has updated its guidelines to determine which parties are eligible to participate in its reverse repurchase agreements (RRP), potentially hindering Circle's access to the Fed's reverse-repurchase program. The Circle Reserve Fund, its money market fund managed by BlackRock, is a 2a-7 fund that is only available to Circle and could be "deemed ineligible" according to the Fed's statement. Approval into the Fed's program would allow Circle to earn interest on excess funds by investing in low-risk Treasury securities, helping to maintain the stability of its stablecoin, USD Coin (USDC). Circle has turned its focus to having "more banking partnerships on a global basis" since the depeg of USDC following the collapse of Silicon Valley Bank (SVB) on March 10.

(By CIARAN LYONS)