The issuer of the USDC stablecoin, Circle, has decided to convert its entire reserve into cash.
Circlewill support USDC in cash onlydollars and short-term US Treasury bonds. According to the blog post, this decision was made to ensure full transparency and compliance with all regulatory requirements.
Last month, Circle released a report onproviding USDC. The US dollar accounted for only 61% of the reserve, which caused a mixed reaction from experts and the community. That could hamper Circle's plans to go public in a $4.5 billion SPAC deal this year.
The Circle blog posted last week that the company intends to become a federal bank and that USDC will grow in circulation.
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