Jeremy Allaire, Circle co-founder and CEO, provided details on how the USD Coin (USDC) stablecoin works. The initiative aims to build trust amid industry complexities in the wake of Terra’s collapse.

1/ With many companies facing key challenges and risks, Circle has increased our own knowledge of Circle and USDC. I’m sharing it here so that it’s fresh for people to review. We started publishing these in the days following the Terra collapse. https://t.co/SYNpwYxUif

— Jeremy Allaire (@jerellaire) July 2, 2022

USDC reserves are held at leading US financial institutions such as BlackRock and Bank of New York.

Of the $50.6 billion collateral (as of May 13), $39 billion (71.1%) was treasury bills no later than three months, and $11.6 billion was cash.

Circle publishes monthly reports on the compliance of USDC issuance with reserves and is audited annually by one of the industry’s leading firms.

licensed MTLThe company and its activities are subject to federal supervision.

The co-issuer of the stablecoin will begin to provide weekly and then daily reports on the issuance and redemption of USDC. For Circle account holders, transactions are actually instant.

Allaire promised to reveal the details of the Circle Yield within a week. The product is positioned as a regulated investment contract that only accredited bidders can interact with.

Recall that in June 2022, Circle launched the euro-pegged stablecoin Euro Coin (EUROC).

In April, Allaire said the company is preparing to apply for a US cryptocurrency banking license. According to him, this should happen in the “near future”.

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