USD Coin [USDC] tokens do not exceed balance of US dollars held in custody accounts, says report

News revolving around the USD Coin [USDC] had taken a negative connotation when Coinbase CEO Brian Armstrong was called out for shilling the cryptocurrency. As a way to put any fears or speculations to bed, Grant Thornton LLP, an independent accounting firm released the latest attestation report on US dollar reserves backing USDC.

The report stated that:

“As of April 30, 2019 at 11:59 PM Pacific Time:

USD Coin (“USDC”) tokens issued and outstanding = 293,184,174 USDC US Dollars held in custody accounts = $293,351,374

As of the Report Date and Time, the issued and outstanding USDC tokens do not exceed the balance of the US Dollars held in custody accounts”

The attestation was conducted by Thornton to obtain reasonable assurance about whether the Reserve Account Information about the organization and USDC was correctly stated. The report added:

“The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material misstatement of the Reserve Account Information, whether due to fraud or error. In making an assessment of the risks of material misstatement, we considered and obtained an understanding of internal control relevant to the preparation of, and the Reserve Account Information in, the accompanying Reserve Account Report in order to design procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of such internal control.”

The criteria for the legal assessment was split into two different criteria. The first criterion stated that the USDC tokens were the number of tokens issued and outstanding denoted under contract 0xa0b86991c6218b36c1d19d4a2e9eb0ce3606eb48 at the exact time and date mentioned on the Ethereum blockchain.

Another criterion pointed to the total amount of United States dollars held in custody. The report stated that the total amount of USD is the sum balance in accounts held by Circle at federally insured US depository institutions on behalf of USDC holders.

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