March 31, 2023


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Key takeaways from USDC $44.5 reserve report

2 min read

USD Coin (USDC) issuer Circle has launched an accountant-verified report of its treasury reserve holdings backing greater than $44.5 billion price of tokens at present in circulation.

Circle’s December 2022 reserve report, which was reviewed by GrantThornton accountancy group, breaks down the present make-up of the stablecoin issuer’s reserve vault. In response to Circle, 44,553,543,212 USDC is at present backed by $44,693,963,701 U.S. {dollars} held in custody accounts.

It’s price noting that a good portion of the latter quantity is invested in quite a lot of U.S. Treasury bonds. As per Circle’s VP of accounting Timothy Singh, the truthful worth of belongings within the USDC reserve is the overall steadiness of USD denominated belongings, together with a mixture of money and treasury bonds.

Circle’s Reserve Fund is registered as a authorities cash market fund. The fairness pursuits within the fund are totally owned by Circle and embrace 14 completely different US Treasury Payments valued at over $23.5 billion. The fund additionally holds $48.9 million in money whereas an additional $33 million is as a result of Fund, offset by ‘timing and settlement variations’.

Related: Stablecoin settlements can surpass all major card networks in 2023: Data

One other two US Treasury Securities valued at $10.5 billion are reported in a separate reserve belongings class, alongside one other $10.5 billion in money that’s held by numerous monetary establishments on behalf of Circle.

U.S. banks holding Circle’s money reserves embrace the Financial institution of New York Mellon, Residents Belief Financial institution, Prospects Financial institution, New York Group Financial institution, Signature Financial institution, Silicon Valley Financial institution and Silvergate Financial institution.

Circle and funds platform Ripple had been notable attendees that participated in cryptocurrency and blockchain targeted workshops on the World Financial Discussion board in Davos in January 2023. 

Circle’s vp of world coverage Corey Then stated the group had held discussions with policymakers, conventional corporations, tech corporations and humanitarian organizations to unpack the opportunity of utilizing USDC as a cost resolution sooner or later.

Over the previous two years, Circle’s place as a stablecoin issuer has constantly grown, leaving USDC because the second most used USD-backed stablecoin behind USDT Tether.