In a press release issued on Christmas Eve, USDC stablecoin issuer Circle claimed to have launched a new platform offering tokenized gold and silver trading.
However, a Circle spokesperson told CoinDesk that this is a “fake.”
The platform, launched under the name CircleMetals, was promoted through a press release distributed on December 24th. This is a day when many U.S. businesses are closed or operating at limited capacity, resulting in slower response times.
This release described a new service that enables 24/7 swaps between USDC, purportedly backed by COMEX-linked liquidity, and tokens purportedly gold (GLDC) and silver (SILC) tokens. Curiously, users were encouraged to exchange on the platform and receive “1.25% $CIRM rewards.” CoinDesk was unable to verify the aforementioned CIRM token, which does not appear to be listed on any major data aggregator.
The website asks users to connect their wallets in order to be able to exchange for purported precious metal tokens. Connecting your wallet directly to an unverified website is generally considered a bad idea, as malicious attackers can compromise your wallet.
Screenshot of the CircleMetals wallet connection popup. (Francisco Rodriguez/CoinDesk)
The release also featured Circle branding and was claimed to quote executives, including CEO Jeremy Allaire.
“We can confirm that this is not genuine,” a spokesperson told CoinDesk in response to questions.
The press release announcing the product was distributed through a cryptocurrency-specific PR wire and included a link to what appears to be a swap platform that allows users to connect their addresses, offering rewards for exchanging tokenized gold and silver tokens.
ChainWire, the PR firm that originally posted the press release, declined to comment.
Although the website continues to exist, there is no evidence to suggest that GLDC or SILC tokens exist or that any legitimate financial institutions are involved.
