Circle Releases USDC Reserve Assets Clears Trouble Rumors

Circle, the issuer of USDC, said it will now publish monthly stablecoin escrow reports to increase transparency in the eyes of the community.

Circle responds to rumors of “unsustainable operating model”

The company behind the second-largest stablecoin in the crypto market, Circle, recently posted its first monthly wealth report. This company also announced that from now on it will update this report monthly to dispel rumors surrounding the company’s operations.

According to data shared by Circle CEO Jeremy Allaire, as of June 30, 2022, the total amount of stablecoins they have issued is 55.5 billion USDC, backed by $55.7 billion in assets.

In which, most of the company’s reserve assets are in the form of 19 types of US Treasury bills, with a total value of up to $42.1 billion. All of these bonds are short-term 3-month bills, maturing between July 5, 2007 and September 29 of this year.

The remaining assets, including $13.6 billion, are cash held in bank accounts 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.

However, the report is just a unilateral statement of Circle’s side, not verified by any independent audit unit.

This is considered a response of Circle to the recent wave of rumors that the company’s operating model is unsustainable and is facing the risk of collapse because of the current liquidity crisis in the market. cryptocurrency field.

Circle in late June released a euro-pegged stablecoin called EUROC. However, just 2 weeks after its release, the euro’s value fell to par with the US dollar, causing many to joke that this company created another version of USDC.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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