Circle has revealed the structure of the USDC stablecoin provision
Circle Internet Financial has published a detailed, although not audited, structure of reserve assets to secure the USDC stablecoin
As of June 30, Circle reportedly owned $42.1 billion worth of U.S. Treasury bonds with an average maturity of 44 days (bonds are considered short-term if the maturity is less than 3 months).
Circle also has $13.6 billion in cash at its disposal, which is stored in regulated financial institutions, including Bank of New York Mellon, Signature Bank and Silvergate Bank.
Circle's reported assets of $55.7 billion slightly exceed the volume of USDC ($55.4 billion) in circulation. As you know, the USDC assumes a 1:1 peg to the US dollar.
"While American politicians are working to introduce federal regulatory standards for stablecoins, Circle continues to increase the level of transparency based on industry innovations and meet USDC holders halfway," said Jeremy Fox-Green, the company's CFO.
Against the background of market volatility and the collapse of Terra, several stablecoins lost their binding to the dollar, for example, USDD and USDN. For a short period of time, the binding of the largest USDT stablecoin fluctuated.
Since May, USDC has managed to increase market share due to USDT. According to CoinGecko, $17 billion was withdrawn from USDT, and USDC managed to increase capitalization by $7 billion, as holders began to prefer more reliable assets.
https://coin-signal.com/cryptonews/circle-has-revealed-the-structure-of-the-usdc-stablecoin-provision/
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