Circle publicly endorses assets, the stablecoin USDC. support
At the end of May, the crypto community started discussing the USD stablecoin (USDC) as confirmation of the project’s reserves was delayed. At that time, USDC issuance was growing rapidly, and by the end of the month, Coinbase, a partner in the Center Consortium, had revealed USDC accounts with 4% APY interest.
Just days later, Circle announced that the project had expanded to the Tron network and plans to work on ten different blockchains. At the time of writing, USDC is the second largest stablecoin after Tether (USDT) with a current value of $ 26.78 billion.
At press time, the 30 day stats show USDC in circulation as of July 20, 2021, 10% higher than the last confirmation as the reserve report only includes USDC at the end of the month.
in the post In a blog posted on Tuesday (July 20), Allaire said Circle and the Center Consortium had secured “pillars of trust” to help the public understand that USDC was still 1: 1 backed by dollar property funds.
Allaire emphasizes that “pillars of faith” include:
- Ensure the highest standards of regulation and security for the management of the USDC ecosystem.
- Provides assurance, evidenced by a reserve certificate issued by Grant Thornton, one of the world’s leading accounting firms, that dollar assets can meet the circulation for USDC balances. Today marks the 33rd confirmation of reserves since the USDC went live, demonstrating our unwavering commitment to trust in the USDC ecosystem.
- The core economic activities that underlie the USDC are built within the US financial system, not outside. Build an open medium of exchange on the Internet that teaches the basic trust of the US dollar and the basic oversight and first principles of the US financial system. Therefore, our commitment to openness, competition and responsible financial service innovation remains the basis for both the Center Consortium and Circle.
USDC’s reserves will be divided into dollar assets as of May 28, 2021.
Support of the circle and letter by Grant Thornton gives the public some insight into how USDC support is actually calculated. Although the bulk of USDC collateral is cash, it also includes small portions of corporate bonds, US Treasuries, and Yankee certificates.
Grant Thornton is the seventh largest independent accounting firm in the world. Grant Thornton’s letter regarding USDC reserves states that there are approximately $ 22,176,182,251 in circulation as of May 28, 2021.
“The total fair value of US dollar assets held in segregated accounts must be at least equal to the USDC in circulation on the balance sheet date.”
Circle values transparency, accountability and better disclosure
Allaire also explains in his blog post that the latest confirmation helps track analysis of dollar-linked assets.
“With this latest confirmation of reserves, we are now analyzing dollar-denominated foreign reserve assets, all of which are held under the care, supervision and control of US regulated financial institutions and in accordance with laws and regulatory guidelines.”
“As we continue our journey to becoming a public company, we will have more opportunities to increase the transparency, accountability and disclosure of our business and wider business operations. Overall, this expansion of public accountability can help build confidence in Circle, USDC and the companies that are building on the standards and market infrastructure we deployed over the past year. “
According to News.Bitcoin