Circle releases its first monthly USDC collateral report
- July 15, 2022
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Of the $55.7 billion Coin (USDC) stablecoin collateral, $42.12 billion was held in US Treasury bonds and $13.58 billion in cash-issued banks. Such data is included in the
Of the $55.7 billion Coin (USDC) stablecoin collateral, $42.12 billion was held in US Treasury bonds and $13.58 billion in cash-issued banks. Such data is included in the Circle partner publisher’s unaudited report as of the end of June.
Circle continues to increase our transparency, and today we shared a detailed look at the assets that support the USDC reserve. https://t.co/1tuaFWZhIO
— Circle (@circlepay) 14 July 2022
As of this date, $55.57 billion worth of tokens were in circulation, with collateral of $55.7 billion.
Circle has deposits at Bank of New York Mellon, Citizens Trust Bank, Customers Bank, New York Community Bank, Signature Bank, Silicon Valley Bank, Silvergate Bank and US Bancorp.
The weighted average duration of invoices was 43.9 days. The maturity of the purchased securities of 19 issues varies between 5 July and 29 September.
In a blog post, the company emphasized that the collateral is held in segregated accounts and is completely separate from Circle’s operations. It is subject to all protections in accordance with the law.
The Collateral Report is a follow-up to a series of publications by CEO Jeremy Allaire aimed at building trust amid industry complexities after Terra’s collapse.
“We have announced the first USDC reserve asset structure that covers all treasury bills and a list of cash reserve holders”– explained the top manager.
Allaire promised that such reports would be published daily in the future. The level of detail may increase in terms of the amount of funds transferred to each financial institution. This happens if the corresponding request from Circle is approved.
2/ We’re not done, we continue to do more, including getting permission from our banking partners to disclose how much cash at each institution to ensure greater transparency, as well as moving to daily public reporting on reserve assets. We will be there.
— Jeremy Allaire (@jerellaire) 14 July 2022
On July 8, issuer Pax Dollar (USDP) and Binance USD (BUSD) also announced its desire to switch to a monthly format for issuing reserve collateral.
We bring unprecedented transparency #stable coins by publishing reports supporting financial instruments $USDP & $BUSD. These provide us with cash, secured overnight loans and CUSIPs that show we’re back with US Treasuries less than 90 days. https://t.co/JrtWj2lMVX
— Paxos (@PaxosGlobal) 8 July 2022
Earlier, Allair promised to reveal the details of Circle Yield’s work. 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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