Circle Highlights Holding Audited ‘Collateral Assets’ of USDC Reserves


Reviewed reserve assets report

Circle, which issues the US dollar-linked stablecoin “USDC”, which occupies a large share of the crypto asset (virtual currency) market, has released a reserve report for December 2022.

He emphasized the holding of collateral assets (reserves) in excess of about $140 million against the USDC circulating in the market.

As of December 31, 2010, USDC’s circulating volume and reserve assets are as follows:

  • Total USDC in circulation: $44,553,543,212 (approximately ¥5,805.4 billion)
  • Total reserve assets: $44,693,963,701 (Approx. ¥5,823.7 billion)

Circle’s reserve assets consist of the Circle Reserve Fund (hereafter referred to as the Fund), US Treasury bills (US Treasuries), and cash deposits with US financial institutions. The breakdown is as follows:

  • Total fund assets: $23,663,857,053 (approximately ¥3,083.4 billion)
  • Total U.S. Treasury bills: $10,523,715,583 (approximately ¥1,371.2 billion)
  • Total cash and deposits: $10,563,911,065 (approximately ¥1,369 billion)

The fund is registered as a sovereign money market fund (MMF) and consists of three-month short-term government bonds with different maturities (total of $23,581,809,113: approximately ¥3,072.7 billion) and cash ($82,047,940: approximately 10.69 billion yen).

Financial institutions (all compliant) that manage cash in their reserves are:

  • Bank of New York Mellon
  • Citizens TrustBank
  • Cuscomers Bank
  • New York Community Bank
  • Flagstar Bank
  • Signature Bank
  • Sillicon Valley Bank
  • silvergate bank

The above content has been reviewed by the Grant Thornton Group, a leading accounting and auditing firm, in accordance with the certification standards set by the American Institute of Certified Public Accountants (AICPA).

Circle has published a detailed breakdown of its reserve assets every month since July last year, and the company’s website publishes the composition of its reserve assets (issue and redemption status).

USDC economic report released

On the 17th, Circle released a report titled “Current State of the USDC Economy” summarizing 2022. In the foreword, CEO Jeremy Allaire notes that today, 10 years after Circle’s founding, the USDC is becoming mainstream and the economy is “going to become a major force in facilitating internet-scale economic activity.” Stated.

He pointed out that digital currencies like USDC are shifting to the stage of practical value rather than speculation. In the Internet age, he argues, “promoting responsible innovation like USDC is not about competing with the traditional financial system, but rather about completing the unfinished business.”

USDC as an “always-on, regulated, programmable, combinable digital dollar” supports a variety of use cases, enabling things that were not possible with analog, closed financial networks. Therefore, Circle expects that it may spread widely in global commercial transactions.

Relation:Circle Inc. Allows USDC Payments with Apple Pay

In addition, the reason why discussions on how to regulate stablecoins are gaining momentum around the world is that stablecoins are most likely to be linked to the real economy and incorporated into the regulated financial system. He showed recognition that it was because he was there.

Relation:US Circle Announces Basic Principles for Stablecoin Policy

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