Circle platform promising tokenized gold, silver swaps is ‘fake,’ company says

A press release published on Christmas Eve claimed that Circle, the issuer of the USDC stablecoin, had launched a new platform offering tokenized gold and silver trading.

However, it is “fake,” a Circle spokesperson told CoinDesk.

The platform, launched under the name CircleMetals, was promoted through a press release distributed on Dec. 24, a date when many U.S. businesses are closed or operating at limited capacity, and response times are slower.

The release described a new service enabling 24/7 swaps between USDC and purported gold (GLDC) and silver (SILC) tokens, supposedly backed by COMEX-linked liquidity. Oddly, it prompted users to swap on the platform and receive “1.25% in $CIRM rewards.” CoinDesk couldn’t verify the said CIRM token, which doesn’t appear to be listed on major data aggregators.

The website asks users to connect their wallets to enable their ability to swap for the supposed precious metals tokens. It is generally considered a bad idea to connect wallets directly to unverified websites, as malicious actors can then drain user wallets.

The release even used Circle branding and claimed to quote executives, including CEO Jeremy Allaire.

“Confirmed this is not real,” a spokesperson told CoinDesk when asked.

The press release announcing the product, distributed via a crypto-focused PR wire, includes links to what appears to be a swap platform that allows users to connect their addresses and offers rewards for swaps of the supposed tokenized gold and silver tokens.

The PR firm that originally listed the press release, ChainWire, declined to comment.

While the website remains live, there is no evidence to suggest that GLDC or SILC tokens exist or that any legitimate financial institution is involved.