Circle releases detailed USDC stablecoin reserves report

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USDC issuer Circle has published the first report on the reserves backing the stablecoin. It turned out that all funds were placed in US dollars and US Treasury bonds.

The publication of such reports will become monthly.The initiative was launched as part of creating a more transparent ecosystem for stablecoins. In early July, rumors appeared in the cryptocurrency community about “problems” at Circle, after which the company’s co-founder and CEO Jeremy Allair announced the initiative.

According to the report, fiat funds amounting to$13.58 billion is placed in regulated US banks. These included such organizations as Bank of New York Mellon, Citizens Trust Bank, Customers Bank, New York Community Bank, Signature Bank, Silicon Valley Bank, Silvergate Bank and US Bancorp. The remaining $42.12 billion is placed in three-month US Treasury bonds.

Please note that the data is as of June 30.At that time, the capitalization of USDC was $55.57 billion, and the amount of reserves reached $55.7 billion. Thus, according to the report, the stablecoin is fully backed by reserves and no shocks in the cryptocurrency market will be able to decouple the token exchange rate from the US dollar exchange rate. The report was created by the company itself and has not been verified by third party audit firms.

“This report is part of our commitmentincrease transparency and availability of information about USDC. We are publishing the first monthly reserve report for USDC, reporting on bonds purchased and banks holding fiat currency. But we will not stop there and will continue to increase transparency, including by trying to get permission from our partners to provide data on how much of our funds each bank holds. In the future, we hope to provide data on a daily basis,” Allaire said.

Let us recall that in mid-June, despite the volatility of the cryptocurrency market and the problems of stablecoins, Circle launched the euro-backed stablecoin Euro Coin.